Our June 2023 Newsletter: Trying to Time the Market?
Submitted by Saratoga Financial Services on June 5th, 2023
Trying to Time the Market?
Buying low or selling high is a prudent strategy for most investors as an effort to maximize returns. But buying lowest or selling highest is an elusive strategy, one that is difficult to execute and that may lead to lower returns and missed opportunities.
Predicting a market high or low is achieved only through hindsight. Therefore, if you transfer money out of stocks when the market is low, you may not get back in time when prices begin to increase.
Rather than trying to find the “perfect” time to invest, adopt a balanced investment strategy that aligns with your personal risk tolerance and time frame. Of course, past performance does not guarantee future returns, but the stock market has historically rebounded from downturns. And these rebounds can come about quickly.
Without any clear indication of when markets will rebound, investors may miss rebound opportunities when they fail to invest. Below are more examples of downturns and subsequent rebounds:
Social Security 2024 COLA Prediction
The Social Security Administration is expected to announce the 2024 COLA (cost of living adjustment) in mid-October and it is predicted that we will see a 3.1% increase for 2024. As inflation continues to cool this year, the estimated increase is less than half of what was delivered for 2023 at 8.7%.
Our current increase was the biggest increase in 4 decades. Granted this 3.1% figure is just an estimated prediction, the Bureau of Labor Statistics released the CPI (consumer price index) and revealed inflation rose 0.4% over last month and 4.9% over the prior year in April.
The actual COLA is calculated by averaging together the CPI-W (consumer price index for urban wage earners and clerical workers) for the third quarter of the year – July, August, and September of 2023 – and then compares that figure with the same data last year. Therefore, we see the COLA announcements in October. To read more about the estimated COLA increase, click here
Happy 20th Anniversary Jamie!
Join us in congratulating Jamie Usas on her 20th anniversary here at Saratoga Financial Services!
As our Operation Manager, Jamie joined the team in 2003 and remains an essential member of our office.
"I have enjoyed working with clients on their retirement and investment planning needs over the last 20 years. Helping them through some of their happiest milestones, as well as through the tougher ones, has been such a rewarding experience.
I'm looking forward to working with clients in the years to come."- Jamie Usas
Jamie's email is Jamie.Usas@lpl.com if you would like to send her a note.
We thank her for all her dedication throughout the past 20 years!
Thank You!
We would like to thank those who attended our 12th Annual Shred Event on May 6th. It was a successful morning shredding documents, saying hello to our clients outside of the office and meeting members of our community.
We are happy to announce that we shredded over 5,000 pounds of paper that will now be baled and recycled into everyday paper products.
An extended thank you to those who generously donated to the local non-profit program, Act With Respect Always. Thank you for helping spread the importance of showing respect in our schools, sports and everyday life.
We are looking forward to next spring for our 13th Annual Shred Event!
Pictured above: Jamie, Bob, Drew & Lauren with the Act With Respect Always team and Confidata.
