The fourth quarter is often the best performing quarter of the year for the stock market. However, this year has been anything but predictable and a positive Q4 is certainly not guaranteed. To learn more about what may be ahead for investors for the rest of 2021 and beyond. U.S. News & World Report interviewed Terry Sawchuk, founder and chairman of Sawchuk Wealth.
Many experts currently have an optimistic outlook for the stock market for the rest of 2021 – and Sawchuk agrees. “Momentum will continue to build as earnings continue to be solid for the next few weeks,” he says.
However, Sawchuk believes that there is a chance that this upswing will face some challenges in the new year. “I am anticipating a market pullback heading into 2022,” he tells the publication. Why might this be the case? There’s a long list of factors, with Sawchuk specifically pointing to adjustments to capital gains tax rates, elevated stock valuations and continued supply chain disruptions.
In addition to the chance of market turbulence, Sawchuk has another warning for investors: do not rely on bonds to minimize risk. “Bond yields are so low that they don’t offer a competitive alternative to equities,” he explains.
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Any information discussed in this article is for educational purposes only. It is not meant to be any kind of recommendation or financial advice. The information contained in this video is intended for informational purposes only. Any opinions are those of Terry Sawchuk and not necessarily those of JW Cole Financial, Inc. or JW Cole Advisors, Inc.
Securities offered through J.W. Cole Financial, Inc. (JWC) Member FINRA/SIPC. Advisory services offered through J.W. Cole Advisors, Inc. (JWCA). Sawchuk Wealth and JWC/JWCA are unaffiliated entities.