By Jay Sanford, Director, Investment Strategy
As stated at the beginning of the year, we thought we could see positive single digit returns in the markets, with an increase in volatility. We certainly got the latter correct as we started the year on a two week upswing, followed by a six week downdraft, followed by a steady climb to the notorious month of October, only to find it was a “trick” instead of a “treat”! That trick turned into a treat the first week of November and now we find ourselves back on the roller coaster heading down. WHEW!
As it stands now, the US markets are flat to slightly negative, while the international markets and bond markets are mostly negative year to date. What that means for well diversified, risk aware clients is most portfolios are flat to slightly negative YTD. With diversification comes being in certain segments of the markets that don’t always perform lockstep with the US markets. Trade (China), Brexit, Tariffs, close elections, wildfires, rising interest rates, all grab headlines and push and pull the various markets.
At the end of the day though (and the end of 2018), we still see the economy humming along, strong jobs’ numbers, low gas prices and great company earnings. We think there will be a jolt of stimulus at the beginning of 2019 as people file their taxes and realize they might not owe as much as they thought. We also believe that the President, for better or worse, will do anything he can to make sure the economy is strong as his reelection nears.
We understand the anxiety people are having when it comes to the up and down of the markets. By cutting through the noise, we see strong earnings and a strong economy. That should push to the forefront. Volatility is natural and necessary for a healthy market. Consider buying when you can (your 401k will thank you for it) and keep the long term in mind. Your goals and risk tolerance remain the same whether the markets are up or down.
Don’t hesitate to reach out to us with any questions or concerns. As we always say, communication is imperative.
All the best to you and yours.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.
To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.
Investing in mutual funds involves risk, including possible loss of principal.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Global Retirement Partners, LLC (GRP) a registered investment advisor. GRP, LPL Financial, and Washington Financial Group are separate non-affiliated entities.
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