In more volatile days, like we've seen lately, we believe it’s important to be proactive and explain to you what’s going on.
Plainly put, the stock market sold off.
However, we are remaining calm, as we view this as panic selling or fear selling.
Sources are saying that the sell-off has been driven by program trading desks also known as algorithmic trading desks, which are selling out of passive funds.
We don’t believe that the sell-off is warranted because the economy is strong in our opinion.
An area of strength today was the new issue loan market.
And in our view, the business loan market is a great barometer for strength in the U.S. economy generally speaking.
In preparation for continued volatility, over the last few months we’ve built up a cash position in our portfolios and we’re going to look to buy the dip as we see opportunities arising in the coming weeks and months.
The "stock market" is a collective reference to the S&P 500 index, Dow Jones Industrial Average, and the Nasdaq Composite Index on 10/10/2018. Sources reporting that the sell-off was driven by program trading desks was referenced from the Bloomberg article "Traders Say Bad Day Was Overdue in Stocks, Not a Reason to Panic" by Gregory Calderone and Sarah Ponczek. New issue loan market referenced from the Bloomberg article "U.S. Leveraged Loan Prices Ease Slightly, Concentra Sets Reprice" by Lisa Lee.
Round Investments LLC, dba Round, is an SEC registered investment advisor. Securities offered through Apex Clearing Corporation, Member FINRA, SIPC.
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