In today\u2019s Steady Investor, we look at key factors that we\nbelieve are currently impacting the market and what could be next for the\nmarkets such as:<\/p>\n\n\n\n
How a Property\nDeveloper in China Rattled Global Markets \u2013 <\/strong>China\u2019s red hot real estate\nmarket has been juiced over the years by billions of dollars in borrowed money.\nAt the center of the real estate boom is the massive property developer named\nEvergrande, which few investors knew at the start of the week but now virtually\neveryone is aware of. Evergrande borrowed and built at a furious pace, amassing\nsome $89 billion in outstanding debt by the end of June. Selling apartment\nunits became so popular in Chinese society that flyers to buy homes were passed\nout at stoplights and real estate agents set up kiosks on the street. Perhaps\naware of the deleterious effects of a housing bubble (U.S., 2005-2009), the\nChinese government has been tightening the spigot and reining in debt and lending\npractices, which has stunted Evergrande\u2019s cash flow and has the company at the\nbrink of bankruptcy. 42% of the $89 billion in outstanding debt is due within\nthe next year. News that Evergrande was on the brink sent markets into a tizzy\non Monday, and the jury is still out on whether the company will survive and\nwhether China\u2019s real estate bubble will burst. Many on the street believe\nChina\u2019s government will ultimately intervene, but the greater concern is the\nstate\u2019s high-profile crackdown on the private sector. Numerous regulatory\nactions are signaling China\u2019s increasingly heavy-handed approach to business.1<\/sup><\/p>\n\n\n\n ____________________________________________________________________________<\/p>\n\n\n\n Tips On How to Survive this Market\u2019s Extreme Volatility<\/a><\/strong> To help you understand market downturns and steps you can take to protect your assets during the next bear market, you\u2019re invited to get our free guide –\u00a0Everything You Need to Know About Bear Markets<\/em>.2<\/sup> ____________________________________________________________________________<\/p>\n\n\n\n An Ominous Trend to\nWatch This Winter \u2013 <\/strong>Natural gas prices have been ticking sharply higher over\nthe last several weeks, more than doubling from levels just six months ago. In\nSeptember alone, natural gas prices have soared over 15%, which sends an\nominous signal heading into the winter months. Generally speaking, natural gas\nprices do not increase with such magnitude before\n<\/em>the cold weather season. The last time natural gas prices rose so quickly,\nit was prompted by the blizzards that froze the Northeast early in 2014.\nAnalysts believe the increases to date may be a sign that gas prices could move\neven higher still as cold weather arrives, which could mean more expensive\nheating bills for households and rising energy costs for large corporations.3<\/sup><\/p>\n\n\n\n Cargo Ships Remain\nJammed in Ports \u2013 <\/strong>Before the pandemic, it would have been rare for more\nthan one or two ships to be waiting at the ports of Los Angeles and Long Beach\nto unload. But as of last Sunday, there were over 70 ships <\/em>waiting off the jammed ports, which is more than\ndouble the amount there were just one month ago. We have written several times\nthat supply chain disruptions have taken many forms, from factory closures in\nSoutheast Asia to raw good shortages across the world. Cargo ships jammed up at\nports are an additional factor roiling supply chains.4<\/sup><\/p>\n\n\n\n The Fed\u2019s 2-Day Policy\nMeeting Signals a Slightly More Hawkish Outlook \u2013 <\/strong>As expected, the Federal\nReserve did not make any changes to the policy in this week\u2019s two-day policy\nmeeting, but they did set the stage to the possibility of trimming bond\npurchases beginning at the November 2-3 meeting. The Fed\u2019s $120 billion in\nmonthly asset purchases has arguably kept long-term interest rates low,\nproviding a tailwind to the strong housing market but also holding down the\nlong end of the yield curve. As inflation concerns spread across all facets of\nthe global economy, the Fed appears to be positioning for the possibility of\nraising rates as early as next year. Half of the 18 participants in the two-day\nmeeting expected to raise rates by the end of 2022.5<\/sup><\/p>\n\n\n\n Prepare for Market\nDownturns<\/strong> \u2013 We\u2019ve all witnessed\nhow quickly the stock market can change. That\u2019s why it is important for\ninvestors to understand how bear and bull markets work.<\/p>\n\n\n\n To give insight into market downturns and steps you can take to protect your assets during the next bear market, you\u2019re invited to get our free guide –\u00a0Everything You Need to Know About Bear Markets<\/em>.6<\/sup> Chinese property developer rattles markets, natural gas up 15%, cargo ship jammed up at ports <\/p>\n","protected":false},"author":3,"featured_media":7426,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71,73],"tags":[],"class_list":["post-9874","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-private-client-group","category-steady-investors-week"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9874","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=9874"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9874\/revisions"}],"predecessor-version":[{"id":10300,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9874\/revisions\/10300"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=9874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=9874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=9874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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Bull or Bear market?<\/strong> This last year, we\u2019ve witnessed the stock market plunge just to bounce back up. But now, some investors are worried another bear market is around the corner. What can you do to stay on top of your investments during these turbulent times?<\/p>\n\n\n\n
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If you have $500,000 or more to invest, get this helpful guide today. It walks through the history and types of bear markets, how investors typically react to extreme volatility, and what we can learn from the history of bear markets and pandemics.
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<\/a>Download –\u00a0<\/a><\/strong>Everything You Need to Know About Bear Markets<\/a>2<\/a><\/sup><\/strong><\/em><\/p>\n\n\n\n
\u00a0
If you have $500,000 or more to invest, get this helpful guide today. It walks through the history and types of bear markets, how investors typically react to extreme volatility, and what we can learn from the history of bear markets and pandemics.<\/p>\n","protected":false},"excerpt":{"rendered":"