Market Update – February 14, 2020

Executive Summary

Year-to-date, the S&P 500 has returned mid-single digit returns, but now valuations are somewhat elevated
International market valuations are more attractive than U.S. valuations
Investors should focus on the broad international markets and in the U.S. invest in individual securities and not the major indexes

Winter 2020 Quarterly Commentary

2019 turned out to be an extremely positive year for equity markets across the world. At the beginning of the year, not many investors were optimistic regarding the prospect for equity markets, mainly because we had just come out of a bad fourth quarter in 2018 with the worst December on record. On the economic front, the data was mixed. The common belief was to expect a slowdown in the economy because the tailwind of the tax cuts were expected to fade. Neither of these consensus expectations came to fruition. In fact, the opposite happened with the S&P 500 when it closed 2019 with a gain of 28%.

Market Update – January 24, 2020

Earnings Season for the fourth quarter 2019 has begun. We are analyzing the data of the broad market and the individual stocks held in our portfolios. This report will seal the 2019 earnings growth rate. The consensus is that the growth rate will equal that of 2018—in other words, no growth. Normally, we would want to see growth rates in the high single digits, but the markets have been patient with what is believed to be transitory headwinds, such as the U.S. and China trade dispute.

Market Update – January 03, 2020

Happy New Year! Welcome back to the weekly Market Update. With some people still on vacation, we expect average to below average trading volume on the S&P 500. As of Thursday’s close, we have only had one trading day in 2020, but it was a positive one with the tech heavy NASDAQ leading the broader indexes, up 1.33%, followed by the Dow Jones Industrial average posting a gain of 1.16% and the S&P 500 increasing a respectable .84%.

Market Update – December 20, 2019

Going back to the beginning of the year, most analyst were pessimistic thinking the markets would continue the decline that began September 20th, 2018 and ended Q4 with a negative -13.97%. However, that is not how the year turned out. Instead, the markets rallied and as of Thursday’s market close, the S&P 500 is up 27.86% YTD.

Market Update – November 22, 2019

By now, most investors are aware that the S&P 500 is doing phenomenal this year. As of Thursday’s close, stocks are up 25.88% Total Return (including dividends) compared to its historical annual average of about 10%. With such a strong year, investors are beginning to think the markets have gotten ahead of themselves.