I hope you had a good new year!
It looks like the markets are off to a pretty good start this year.
Jobs data came out Friday which was way stronger than anticipated.
The U.S. Federal Reserve also came out with some comments and it seemed as though they're going to potentially be more accommodative, which could be good for the markets in 2019.
Also, the leveraged loan, or bank loan, market got off to a really strong start.
In my opinion, loan ETF's and mutual funds that saw outflows at the end of last year were potentially forced to fire sell some pretty valuable loans where some institutional investors that have come back for the start of the year are starting to step in and see some good bargains there.
Typically, that market is, in my opinion, where the "smart money" is going, and it looks like it's getting off to a really strong start.
There may still be a little bit more volatility to come, but from here on out, I think it's starting to look more and more positive.
Disclosure: 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 markets are 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 being off to a strong start was calculated using Bloomberg Terminal's command for the SPX Index for the market week 12/31/2018 – 1/4/2019. December’s job data beating expectations was in reference to the Barron’s article, “Dow Tries to Hang on to Gains After ‘Blowout’ Jobs Report” by Ben Levisohn. The U.S. Federal Reserve potentially taking an accommodative stance was in reference to the Barron’s article, “Dow Jumps 825 Points Because There’s Too Much Good News to Ignore” by Ben Levisohn. The leveraged loan market off to a strong start was in reference to the Bloomberg article, “U.S. Leveraged Loans Extend Rebound, Epic Sets First 2019 Deal” by Lisa Lee. Leveraged loan ETF and mutual fund outflows was in reference to the Bloomberg article, “U.S. Leveraged Loan Fund outflows Rose to Fresh Record High” by Lara Wieczezynski. Leveraged loan ETF’s and mutual funds being forced to sell underlying loans to meet outflows was in reference to LeveragedLoan.com’s primer on leveraged loans.