Market insights to aid in financial planning

Market Insights

By Eric Wymore CRPS©

As 2019 is under way, here are a couple of important things to consider:

– Back to Back calendar years of market decline are rare. Since 1950 the S&P 500 has had a calendar year decline 18 times. Only twice were those declines over the span of 2 consecutive years. 1973 and 1974 and the 3 year span of 2000, 2001 and 2002. This doesn’t mean that 2019 will be a positive year, it just means that it would be rare if it was negative.

– Brexit Day is March 29th. Currently this is the agreed upon date that the UK will exit the European Union.

– US and China trade talks will be continuing throughout the first quarter. If some form of an agreement can be met, this could provide for the backdrop for continued economic growth for both countries.

– 4th quarter company earnings announcements. With several companies lowering their guidance late last year, it is possible that the bad news is already priced into the current stock price.

– Cash on the sidelines.
With the markets recent volatility, it is understandable why clients have considered keeping cash on the sidelines. Every client situation is different but if you are working, continue to fund your 401k, 403b, IRA, Roth IRA, SEP or Simple IRA. If your savings account is more than 3-6 months’ worth of living expenses, consider putting some of that money to work for you. The key is finding an appropriate strategy that can help meet your financial goals.

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