It’s the Same Old Song With the Markets Says Missoula Advisor

Missoula, MT (KGVO-AM News) - I spoke to a friend of KGVO Bob Seidenschwarz from the investment firm of S.G. Long on Monday about the dramatic losses experienced by the financial markets over the past week.

Seidenschwarz said there’s absolutely nothing unusual about the current market correction.

“There's nothing out of the ordinary about what's happening right now,” began Seidenschwarz. “You build up valuations, and then you get some news that may be concerning, which is the fact that the economy is starting to slow. That's not and should not be a new story, as we've been starting to get data that in many respects is what the Fed has been driving towards when they started raising interest rates because of inflation.”

The Dow Dropped over 900 Points Early Monday

The Dow was down 900 points on Monday after the S&P 500 dropped 2.5 percent. Seidenschwarz said the market movement was not unexpected.

“What we're seeing right now is very common,” he said. “Markets rarely react by letting a little bit of steam and air out of the balloon. It usually comes quickly and violently as people start selling. Lest we forget, we've had a heck of a run in the equity markets here over the last, really, 18 months to almost two years. People have made a lot of money, and I think naturally, nobody wants to be the last one out the door, so we're seeing people take some of those profits off the table.”

Seidenschwarz said Investors are Looking for Safe Places to Put Their Money

He said wise investors are looking for places to put their money.

“There are, without question, certain sectors such as the technology sector,” he said. “If you look at the S and P, that has been really stressed, and we’ve been saying this for quite some time, so this is not to be unexpected. As I said to several colleagues this morning, I've been building up a little bit of cash. Clients that are in bonds right now are doing extremely well. This is creating an opportunity for some great companies that are now falling and they still have quite a bit of room yet to come down.”

Seidenschwarz said all eyes in the financial markets are on you and me, the consumer as to how we will react.

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He said Consumers are the Key to Market Recovery

“The real key here is the consumer,” he said. “If the consumer really starts pulling in their spending, which is such a significant part of our economy, then any of these assumptions or anything I'm saying that variable can have a really major detrimental effect. Right now, we're not seeing that. But as always, watch consumer spending and keep an eye on what you are investing in in the first place.”

Seidenschwarz often appears on Talk Back to discuss financial as well as other worldwide issues.