We’ve had a pretty rough December so far, however, the S&P 500 did finish up on the week.
My view is that the markets may remain a bit choppy through mid-January. I think a lot of people are looking towards trade talks and corporate earnings in January to really give the markets some solid footing.
I believe that some institutional investors aren't necessarily willing to make any big bets towards the end of the year because historically there's been pretty light volume and a lot of people have been out on vacation.
I also believe with this recent sell-off though there are some pretty interesting buying opportunities that have come up. Investors may have irrationally sold some pretty valuable assets out of fear.
There's a saying on Wall Street that this is called, "Throwing the baby out with the bath water.”
But from here I think you aren't going to see investors just going out and buying anything and everything. Over the last few years you've seen synchronized buying which has made sense to go out and buy an ETF that tracks an index.
I think at this juncture it's going to make more and more sense to be investing with a mutual fund manager that has a deep-rooted expertise and knowledge base in a specific market compared to just going and buying ETF's that tracks an index.
I hope you have a great new year!
The information provided should not be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice. The information provided does not take into account the specific objectives, financial situation or particular needs of any specific person. Diversification does not ensure a profit or protect against a loss in a declining market. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. Forecasts or projections of investment outcomes in investment plans are estimates only, based upon numerous assumptions about future capital markets returns and economic factors. As estimates, they are imprecise and hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Investing entails risk including the possible loss of principal and there is no assurance that the investment will provide positive performance over any period of time.
The S&P 500 is in reference to the S&P 500 Index. An index is unmanaged, does not reflect management or trading fees, and one cannot invest directly in an index. The S&P 500's performance finishing up on the week was calculated using Bloomberg Terminal's command for the SPX Index for the market week 12/24/2018 - 12/28/2018. The statement about light trading volume towards the end of the year is a statement of opinion representative of first hand experience. Synchronized buying over the last few years was also a statement of opinion.