February 2019 Commentary: LPL Research 2019 OutlookSubmitted by MidWestOne Investment Services on February 21st, 2019
Ok, by now you all know how I feel about the cold and snow. Even if you enjoy snow, this is a little ridiculous. From December 1 to January 11, we had 1.5” of snow. Since then, we have had 38” not including Tuesday night. I now have enough hours running a snow blower and shovel to be an accredited professional!
I have shared the written version of LPL Research’s 2019 Outlook, but I thought it would be fun to share the video version. Trying to branch out a little and bring you some different mediums occasionally.
The last six or eight weeks have been a great reminder on volatility, although more palatable than the end of 2018. Right around Christmas time, some equity markets touched technical bear market territory, meaning they had fallen 20% from their highs in intraday trading. Since then, we have seen a market winning streak and the major stock indices are up 18-20%. Change in the Federal Reserve’s attitude on rate hikes has been the biggest driver, but there are many other factors that play a role.
I have mentioned the positive market moves a lot in recent weeks, but the Iowa Men’s basketball team finally gave me a way to tie together with bad times. Three consecutive games have come down to the last shot, with Iowa winning two and losing one. People say that Iowa should have won the first two easier than a last second shot or that they were lucky. But it is much more fun to learn lessons when we are winning the games rather than losing them. Financially, we are all ready to examine and adjust our plan when the markets go against us (we are losing). Are we as diligent about reviewing our financial plan when the markets have gained 20% (we are winning)?
Please let us know how we can help (financial planning only, no snow removal)!!
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.