The S&P 500 finished down on the week, and we continue to see this divergence between a strong U.S. economy and the stock market.
I may sound like a broken record, but the economy in the U.S. is still strong. November retail sales beat economists' expectations and the unemployment rate in the U.S. is still near a 49-year low.
So despite all of this growth in our economy, some investors have been caught a bit off guard with the geopolitical noise.
That's where we've seen a bit of de-risking for some investors.
I want to end out the segment and leave you with a saying on Wall Street. Bull markets don't die of old age. They die of excessive valuation, inflation, and euphoria.
We don't see any of those factors at play in the markets currently, so in our view, fear selling at the moment and being afraid of volatility is very short-sighted and premature.
Hope you have a great weekend,
General Disclosure & Supplement:
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 finishing down this week was in reference to the total return for the date range 12/10/2018 – 12/14/2018. The stock market is in reference to the S&P 500 index. Volatility is in reference to the CBOE VIX index. An index is unmanaged, does not reflect management or trading fees, and one cannot invest directly in an index. November retail sales data was in reference to the Bloomberg article, “Retail Sales Show U.S. Consumer Keeping Foot on Growth Pedal” by Katia Dmitrieva and Sho Chandra. Unemployment rate statistic was in reference to the Barron’s article, “Delta Air Lines, Procter & Gamble and 6 More Stocks Making Moves Thursday Morning” by Ben Levisohn. The Wall Street saying was paraphrased from the Barron’s article, “The Dow Rises 157 Points as Investors Find Reasons to Believe” by Evie Liu.