August 2019 Commentary: The Market Moves and So Do WeSubmitted by MidWestOne Investment Services on August 6th, 2019
August is usually a more quiet month for me. In recent years, August represents a slower period for volleyball, so it has been a welcome break following the busy club season. This year with volleyball ending, we took on a new task and are moving into a new house this week. Exciting time with lots to do!
The move did cause me a bit of reflection. My parents have lived in the same house for 40 years. They have travelled south for the winter for the last ten years or so, but home base has remained the same all that time. On the other hand, I have lived in at least 15 different places since I graduated college and 20 or so if you count when I left home for college (my wife said those don’t count!). I have long joked about being slightly nomadic, but I had forgotten all the different places I have called home so it may be less of a joke than I thought.
There is a financial planning aspect to this. We look to spend time getting to know you so we can better understand some of the things that go on under the surface, building a better plan by learning the things that are truly important to you. Sometimes it’s having a sturdy rock for a home base and sometimes it’s the people you are taking the adventure with (nothing to do with my complete lack of handyman skills!). We all have things that effect our investing decisions and some are hard to verbalize or we don’t even recognize them until we talk through other things a bit. It’s what makes the conversations so important to a successful financial plan.
I would be remiss if I didn’t mention the recent market volatility. The market got what it was looking for with the 0.25% rate cut from the Fed last week. The language for cuts going forward was less than certain, so the market was a bit discouraged and the flames were fanned when President Trump again expressed disappointment in Chairman Powell. Then President Trump imposed additional tariffs on China and their subsequent retaliation caused markets to tumble sharply. Hard to imagine this increased volatility will go away with our current leadership style. But while these starts and stops are painful, it is important to remember that through the end of July, the S&P 500 was up over 20%. Even a 5% or 10% correction still leaves us with a heck of a year. I will leave you with Bob Doll’s latest weekly commentary:
Thank you for your continued support!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.