Latest / Markets with Megan: A Quick Financial Markets Update / Impact Report: Correction Is In. Markets Drop10% | S2 E021 | 03-13-25

Transcript

Impact Report: Correction Is In. Markets Drop10% | S2 E021 | 03-13-25 · Markets with Megan: A Quick Financial Markets Update

• 0:00
  Megan Horneman: The correction is in.
• 0:01
  Megan Horneman: This is Thursday, march the 13th, and this is Markets with Megan.
• 0:04
  Megan Horneman: If you like this podcast, please subscribe, hit that alarm bell, share it with friends, family or colleagues.
• 0:09
  Megan Horneman: We're here today to talk to you about the volatility we're seeing in the markets.
• 0:13
  Megan Horneman: It's been a very difficult time for equity investors over the past couple weeks and the S&P 500 officially hit correction territory intraday today.
• 0:23
  Megan Horneman: That means it was a correction of 10% or more from its recent high.
• 0:27
  Megan Horneman: Now let's talk about what's going on, why what we see going forward.
• 0:32
  Megan Horneman: First of all, what's changed today?
• 0:33
  Megan Horneman: Nothing.
• 0:35
  Megan Horneman: The headline news continues to be around tariffs, the going back and forth now between the US and Europe.
• 0:41
  Megan Horneman: We're talking about a possible government shutdown, which was always looming but now looks maybe more of a probability.
• 0:48
  Megan Horneman: And then there was some news out of the White House about Greenland and the possible annexation of Greenland.
• 0:54
  Megan Horneman: All of this was just way too much for investors to absorb.
• 0:57
  Megan Horneman: Combine that with the fact that economic data continues to get weaker.
• 1:01
  Megan Horneman: We got some relatively decent news out of the producer price index today, which was inflation, but still the broad economic picture continues to weaken.
• 1:11
  Megan Horneman: We're still talking about valuations that are trying to find that clarity around earnings, around interest rates, and then, lastly, we're getting some news out of retailers, which started with some of the airlines talking about softening consumer demand, but now we're seeing it from some retail companies.
• 1:28
  Megan Horneman: You're talking about these companies saying that consumers are pulling back on spending or they're being more careful about their spending.
• 1:35
  Megan Horneman: All of this just continues to feed into that negative feedback loop and that uncertainty loop.
• 1:42
  Megan Horneman: What do we think going forward from here?
• 1:44
  Megan Horneman: First of all, there is a lot of rhetoric out of the White House and we understand that it is very difficult for anyone to keep up with this, especially investors that are trying to day trade in this market.
• 1:56
  Megan Horneman: That's not what this market is for.
• 1:58
  Megan Horneman: We continue to look at this volatility as potential opportunities because we think that this rhetoric and this tariff fight is a first half of 2025 phenomenon.
• 2:10
  Megan Horneman: We think that the administration's pushing this all into the first quarter so that they can open up the second half of this year to really focus on that fight on the Tax Cuts and Jobs Act.
• 2:21
  Megan Horneman: These things in the second half of this year and going into 2026 should be positive for the American economy as well as businesses and consumers.
• 2:31
  Megan Horneman: So we're looking at these pullbacks as buying opportunities, looking at some of the areas that are pricing in the potential risk.
• 2:40
  Megan Horneman: So look at small and mid cap stocks.
• 2:43
  Megan Horneman: These are areas of the market that are down now in bear market territory.
• 2:46
  Megan Horneman: In bear market territory, it's pricing in a recession.
• 2:50
  Megan Horneman: It's pricing in almost a worst case scenario.
• 2:53
  Megan Horneman: So it's time to start putting some cash to work, if you have it.
• 2:57
  Megan Horneman: This is the time we want to start piecing away at areas of the market.
• 3:00
  Megan Horneman: The international space we love it.
• 3:03
  Megan Horneman: It's just held up much better.
• 3:04
  Megan Horneman: So we're starting to look at the US market, specifically, as I mentioned, that small and mid cap space.
• 3:10
  Megan Horneman: Now there's a lot of information coming out of these markets.
• 3:13
  Megan Horneman: It's extraordinarily fluid and it's discomforting to investors and Americans, but we feel very comfortable about the prospects for the American economy in the long run and that's why we continue to look at these as buying opportunities.
• 3:28
  Megan Horneman: We'll come back in this forum, as with the podcast, to continue to update on the markets as we see fit, to make changes and recommendations as we see, but for now, this is what we see today.
• 3:39
  Megan Horneman: Continue to look for those opportunities, continue to look at your portfolio, make sure you sure that you're rebalanced in the way that you should be and certain allocations, for example in the large cap growth space, haven't run up too much above the comfort level.
• 3:55
  Megan Horneman: Rebalance those portfolios, have the dry powder, be ready to put it to work In the long run.
• 4:01
  Megan Horneman: These pullbacks tend to be very good long-term buying opportunities.
• 4:06
  Megan Horneman: So we'll be back again with more information as we see it.
• 4:09
  Megan Horneman: If you want a further history of these podcasts, please go to marketswithmegan.
• 4:13
  Megan Horneman: fm.
• 4:13
  Megan Horneman: Thank you.