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A Pullback for Stock Prices

A Pullback for Stock Prices

August 22, 2023

A Pullback for Stock Prices

Offered by Rob Taylor

Nobody ever said you have to like a pullback in stock prices. But it's critical to understand 1) why they happen and 2) why they are challenging.

A pullback is considered a moderate drop in prices from recent peaks that occur within a continuing uptrend. The key phrase is “within a continuing uptrend.” In the chart, you can see that since stocks began to trend higher in October 2022, prices have seen two pullbacks in the past ten months. Is August pullback #3?

Pullbacks can be painful because they break trend lines and support levels. Worse, they can cause investors to second-guess their strategy. Remember, pullbacks are easy to spot in retrospect, but they can be harder to evaluate when your portfolio is losing value.

After August comes September and October, which have their own reputations on Wall Street. So at this time of year, one strategy might be focusing less on the day-to-day market gyrations and more on other projects. And if you need a quick update on Wall Street, don’t hesitate to call.

DISCLAIMER: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of Global View Capital Advisors. LTD (GVCA) or any of its affiliates. The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.