Volatility has reappeared, but don’t lose focus

vancewealth Market Commentary

To begin the 4th Quarter, the equity markets have experienced some notable fluctuations – a sharp contrast from the steady upward climb we saw in 2017. Concerns about rising U.S. interest rates, trade disputes and the technology sector contributed to declines for all three major U.S. stock indices during this same period.

The analysts at Raymond James agree the outlook for the economy remains positive, though volatility is likely here to stay for a while.

“The near-term prospects for the economy remain strong, but there are concerns about the November election, trade policy disruptions, tighter Federal Reserve policy, a stronger dollar, risks to global growth, and labor market constraints,” economist Scott Brown said. “Expect increased volatility and see-sawing markets in the near term.”

Chief Investment Strategist Jeff Saut sees declines such as the ones occurring now as opportunities.

“Unless this is a crash (we doubt it), you should get your buy lists ready,” Saut said.

That said, when the markets experience volatility, it’s natural to feel some apprehension or uncertainty about your portfolio. This is why we spent time developing your tailored financial plan – to account for these fluctuations while remaining focused on your long-term financial goals.

Investors should take market moves like this in context of their own investment objectives. If an investor is looking at a long-term view, market moves like this are noise to either be ignored or viewed as opportunities to buy on the dip. I believe that the current market move is a reset, not the dawn of a deep, prolonged downward trend.

While no one can say exactly what will happen in the coming months, we are closely monitoring these market movements and the driving factors behind them. We will be in touch with any updates or appropriate recommendations should conditions change.

Please let us know if you have any questions about the recent market activity or your long-term financial plan. As always, we remain committed to supporting your financial future and are grateful for your continued trust.

To learn more: Join us at our Annual Market & Economic Update: January 30th in Santa Clarita or January 31st in Pasadena Visit: https://vancewealth.com/events/ to learn more or rsvp.

 

Disclosures: The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete. Any opinions are those of John Vance and not necessarily those of Raymond James. Raymond James does not provide tax services. Please discuss these matters with the appropriate professional.