The markets have continued to fall in the Month of December. A fair argument could be made that the Dax and the FTSE are in Bear territory already with the S & P 500 while lower than at the beginning of the year is coming up to a long term trendline. If this holds at around the current level the S & P should stay above Bear territory but if not the slide may continue. None of this is helped by geopolitical concerns in the major trading blocks of the world with a potential trade war with US and China and the UK leaving the Euro trading zone, and a falling oil price which should be good news in the face of any possible recessions but could also signify a looming drop in demand.
So, how should we view all of this? The answer might be with lot of care – certainly we are not going to rush into investing just right now (although the time could be getting close) as we wait for the markets to settle at these lower levels. The danger is trying to pick the bottom which is why we wait until the market starts to show its hand by trading either consistently up or side-ways in a channel.
May 2019 be for you as you might wish.