Market Update: December 27, 2018
“Always winter never, Christmas…” Mr. Tumnus once told Lucy.
What a week! A wonderful celebration of Jesus’ birth and the markets tried to spoil it. Truthfully, nothing can spoil Jesus’ birth. Yet, this update is about the markets. Volatility has certainly arrived. As we have reported for months, the markets have been set for significant pullbacks. The S&P 500 stopped just short of Bear market territory (technically a 20% loss) on Christmas Eve. Then on the day after Christmas the Dow Jones Industrial Average had is largest point gain ever. These big swings are typical of an unstable market.
Now, for a little good news. While regulations won’t allow me to write the blanket statement that all of your portfolios have been moved to a conservative position; we have made conservative moves in most of our models. We are watching economic and market events very closely and will continue to do so. Our Rules Based Models were built to help us make decisions in times like this.
Our stock market outlook for 2019 is not the prettiest picture, currently. Yet, stocks are not the only choices that we have to invest in. Other asset classes tend to go up when stocks go down. We will look for long term trends in those to responsible invest your money.
Remember that attaining your goals are your true benchmark, not beating the market and certainly not keeping score with your money. When you next talk to your Sound advisor, I encourage you to turn the conversation towards your goals. Are you on track to reach those? Are you staying on track to succeed?
Enjoy the Holidays, these Holy Days mark the birth of our Savior. There is much to be thankful for.
In the meantime, if you want more of an update, the following is from our investment team.
We appreciate the trust that you give us.
Merry Christmas and Happy New Year
Posted on Thu, December 27, 2018
by Chris McAlpin