With the Russell 2000 firmly in bear market territory, and the NASDAQ heading there quickly it appears, the price of entry for new money into equities has been drastically reduced, in rapid fashion.
Unfortunately, as usually happens, there is also a buyers strike as the market tries to find its footing at lower levels. This has been an unusually rocky week in the markets, which are experiencing lots of turbulence, starting back in November with a more hawkish Fed than many had expected.
Throw in the perception of a weak Netflix Q4 report released yesterday, and Peleton's continuing woes (separate and distinct from anything to do with the demise of Mr. Big), and it all adds up to a stock market that is no longer on easy street and may not be again for years. Even the big tech stalwarts are starting to show chinks in the armor, with Amazon now under $3000.
Fortunately, registered index linked annuities continue to offer the same fundamental value in 2022 that they did last year and the years before, that being a great way to secure exposure to the growth potential that only equities can produce, with the comfort of downside cushion provided by buffers or floors.
That balance of risk and reward is even more attractive at today's equity prices. For example, not only can you buy a RILA and allocate to the Russell 2000 indexed account AND know that your first ten percent (or more) of losses will be absorbed by the issuing company at the end of the interest term, but you can get access to that asset category at a 20% cheaper price than just 3 months ago.
Great values like this don't often last. Get 'em while you can.
