As investors turn their calendars to 2020, we reflect on the previous decade in this holiday-shortened trading week.
Ten Years After
The Nightmare Before Christmas
Last year at this time investors experienced the worst equity selloff on Christmas Eve in the history of trading.
The SECURE Act Creates Significant Changes for Retirement Plans
In one of the most significant retirement legislation changes in a decade, the President and Congressional leaders recently approved a bill that will have an impact on certain retirement funds.
Turbulent Times
On October 29, 2018, Indonesia’s Lion Air Flight 610 crashed 13 minutes after takeoff. Months later in March of this year, Ethiopian Airlines Flight 302 suffered a similar fate. Both flights were flown using Boeing’s much heralded new airplane, the 737-MAX or “MAX.”
Outlook 2020
Having climbed the proverbial “wall of worry,” all the major domestic equity indices are poised to end the year at, or near all-time highs. In fact, it was a great year for virtually every asset class as bonds enjoyed their best return in a decade, international equities returned roughly 20 percent and real estate and commodities have also prospered.
Money Talks
Earlier this month, the U.S. Labor Department released its monthly jobs report, which continued to show the strength in the U.S. workforce.
The Fear Index Fades
Negative interest rates have been in the news this year and have been the source of questions from clients. Negative Interest rates are an extraordinarily unusual phenomenon where an investor pays for the “privilege” of loaning a country money.
Investors Should Be Thankful
As we close out another Thanksgiving week, investors have a lot to be thankful for this year. At this time last year, the Fed was still raising interest rates, global economies were slowing and the S&P 500 was on its way to a negative 13.5 percent return for the fourth quarter.
Mickey Mouse
In April, Disney held an investor event outlining the strategy for their direct-to-consumer streaming service, Disney+. The service not only includes classic Disney films, but also the full library of Star Wars, Marvel and National Geographic. Disney indicated that the service would be priced at $6.99 per month, and projected global subscribers in a range of 60-to-90 million by 2024.
Hope is Not Lost, It is Found
While many eyes were on the impeachment proceedings this past week, we saw encouraging retail sales data and the prospect of a completed trade deal with China push equity markets to another all-time high this week. Even as these new highs are met, many investors have a bad feeling about the market.
'Tis the Season for Year-End Financial Planning
Time seems to move faster as we approach the holiday season. Beyond the festivities, there are a number of year-end considerations that could potentially optimize your 2019 tax liability.
Glass Half Full
With some 90 percent of the S&P 500 having now reported third quarter earnings, investors have responded favorably to a plurality of companies delivering better than expected numbers.
Data Deluge
Equities continued to rise steadily for the fourth consecutive week, reaching fresh all-time highs, as market participants digested several meaningful economic and policy data points.
Allowance Can Be the Best Treat for Kids
This is a great time of year to remind children of the long-term benefits of cash over candy. Beyond Halloween, teaching kids sound money-management skills will serve them well throughout their lives. A good place to start is with an allowance.
Show Me the Money
While the U.S. consumer remains resilient, CEO confidence has been deteriorating as economic uncertainty has been increasing.
Gratitude for Dr. Brian Druker
The Ivy League … Grades Have Been Posted
The books are now closed on the 2019 fiscal year for the Ivy League endowments and for the fifth time in the last 16 years, the missed the mark.
Making a Change in Medicare
A good practice for anyone covered by Medicare is to assess if your coverage is compatible with your needs. Contrary to conventional wisdom, choosing health insurance may not be a one-time decision for most Medicare enrollees. Plans change … and of course needs may change over time too.
To Q.E. or Not to Q.E.
Federal Reserve Chair Jerome Powell announced this week that the central bank will once again be purchasing U.S. Treasury securities, reversing the recent trend of allowing its balance sheet to shrink. Immediately, many market participants experienced déjà vu, recalling the first time this monetary policy tool was implemented in 2008.
