Broker Check

Fourth Quarter 2019 Commentary

As we ring in the New Year, the stock market closes out 2019 with a bang! Despite the drama from trade tensions, inverted yield curves, the pivot from rate hikes to rate cuts, slowing global growth and more, nothing seemed to stop the market from reaching all-time highs and extending a bull market run that has lasted more than a decade. Even with the noise, the economy remained on solid ground making 2019 a good year for the markets.

We are excited about what 2020 has in store, but our outlook remains cautiously optimistic. Globally, we expect more political uncertainty to follow us into the New Year adding to risk and volatility. As most investors, we were relieved to see China and the U.S. reach a deal in their trade negotiations last month. Although it’s only Phase I of negotiations, investors are hopeful trade tensions will ease between these two nations.

Back home, GDP growth has slowed, but remained within the expected 2%-3% range. The yield curve is no longer inverted, which has eased some concerns about a looming recession. The Federal Reserve seems to be satisfied with the action they took last year and decided to pause rate movements for now.

As we position portfolios for the New Year, we are focused on increasing the quality in our fixed income allocation, as a form of insurance. We also favor domestic equities over international. We feel large cap stocks that are flush with cash are more inclined to weather the storm and bounce back faster if the market corrects. The goal is to participate in the market upside while adding downside protection.

While we continue to monitor conditions and your investment portfolios, we want to remind you how important it is for you to stay connected. Be sure to schedule your annual review this year to discuss how the new SECURE Act that was signed into law may impact you. We’d also like to discuss any changes to your financial circumstances that may impact your planning goals and/or objectives. The value of our advisory services is enhanced when we have current information and are actively working with you to keep your financial house in order.

In closing, we would like to reiterate how much we appreciate our client relationship. It is truly a pleasure partnering with you! When you refer us to your friends and family, it is the finest compliment we can receive and for that, we thank you. Cheers to a Happy and Healthy New Year!