Jeremy Glaser: Stocks rebounded today with the Dow up over 2% and the S&P 500 rising 1.7%. With this upswing, we think there are three things for investors to keep in mind.
The first is that the volatility might not be over. A lot of the underlying issues that were driving the market over the last week are still very much in place. Inflation is a concern; the Fed may raise rates faster than people expected, and valuations are stretched. We think this could lead to more volatility in the future.
That leads us to our second point, which is that we don't see--as our Gregg Warren described it earlier—“impending doom” in the market. The broader economy remains strong. We don't see a sign of recession, and we still think we're going to see decent earnings growth and buybacks that should help support the market. While there might be volatility, we haven't heard that people think that a bear market is necessarily imminent.
Finally, we think this still remains a good time for investors to really make sure that their long-term financial plan is on track. If you haven't rebalanced in a while and are finding that you own more stocks than you really want or than your risk capacity can handle, this is still a good time to think about balancing, to make sure that you hold those high-quality bonds that could serve as ballast if there were to be more volatility, and to really make sure that your plan is working for you.