May 2019 Commentary: Rounding Things OutSubmitted by MidWestOne Investment Services on May 15th, 2019
I have enjoyed writing these posts in 2019. The relative calm in the markets has allowed me to talk about polar vortex, NCAA basketball, the Masters, and chasing around the country for club volleyball. However, we stumbled out of the blocks in May and then headline risk grew when US-China trade issues escalated. So back to business this week, meaning no great stories about my big round birthday last week or my wedding anniversary this week!
These two links discuss the same trade shock to hit the markets last week, but they do it from unique perspectives. In Bob Doll’s commentary, it revolves more around the issues and impacts of trade disagreements and the likelihood it could go from a short-term hiccup to a longer term problem. The LPL Research takes a more numerical approach to the market volatility and reminds us that while we enjoy positive volatility, there is always some accompanying negative volatility.
I mentioned in the opening about the lack of volatility this year, and even though I am around it every day, I didn’t realize the magnitude until I read the LPL Research commentary. Since Christmas, we have rebounded quickly from the fourth quarter jolt in 2018 and on a nearly straight up trajectory. The last few days have been a quick reminder that it is never straight up or easy with the markets. And those sharp jolts that feel worse than they really are remind us of the importance of having a sound financial plan. That plan is the foundation that keeps us from reacting emotionally to normal market occurrences. We are always happy to sit down with you to review your plan and make sure it still works for you. Yes, reviewing after strong markets is a great exercise, not just after things have been bad for a period.
Thank you for much for your 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.