(315) 624-7300 / Email Us
Ascent Wealth Partners
  • Home
  • Investing
  • Planning
  • 401(k)
  • Knowledge
  • Team
    • Brad Kowalczyk
    • Mark Moshier
    • Scott McCartney
    • Doug Bissonette
    • Neil Edmonds
    • Joe Summa
    • Nancy Kowalczyk
    • Chris Lai
    • Tim Welchons
    • Steve Basile
    • Connie Benson
  • My Account
    • Schwab Login
  • Contact Us
  • Form-CRS
Ascent Wealth Partners
  • Home
  • Investing
  • Planning
  • 401(k)
  • Knowledge
  • Team
    • Brad Kowalczyk
    • Mark Moshier
    • Scott McCartney
    • Doug Bissonette
    • Neil Edmonds
    • Joe Summa
    • Nancy Kowalczyk
    • Chris Lai
    • Tim Welchons
    • Steve Basile
    • Connie Benson
  • My Account
    • Schwab Login
  • Contact Us
  • Form-CRS
Home Chris Lai Market Currents – 1/3/19
Back Home

Market Currents – 1/3/19

byAscentadmin inChris Lai posted onJanuary 3, 2019
0
0
Market Currents – 1/3/19

2018 in Summary
2018 will be remembered for its volatility. After setting all-time highs in late September, markets pulled back sharply in the final quarter of the year amid signs of slowing global growth, concerns over monetary tightening, ongoing political dysfunction, and US-China trade friction. All equity asset classes ended the year in the red, although large cap domestic stocks held in better than other major equity segments. This is the first negative total return year for the S&P 500 since the financial crisis, ending nine consecutive years of positive returns, and tying the longest streak in market history since 1936.

Monetary Policy
At its policy meeting in December, the Federal Reserve signaled that it plans to increase interest rates two more times in 2019. While this is a step down from the three hikes previously telegraphed, the move was still more hawkish than what market participants were expecting, and contributed to the market’s volatility.

Government Shutdown…Again
A dispute over funding for a border wall with Mexico led to a partial government shutdown in late December that has continued into the new year. Historically, U.S. government shutdowns have not been excessively lengthy. Investors will be looking for an eventual face-saving resolution from a politically divided Congress and the White House.

• Easing Trade Tensions. Though far from resolved, the trade backdrop between U.S and China is improving. Rhetoric from the presidents of both nations points towards a more conciliatory tone. With the consequences of the trade war weighing on economies and corporate earnings around the globe, we believe there is strong motivation from both parties to seek a resolution.

Earnings Season
Market anxiety over the economic outlook has put a question mark over consensus earnings expectations. Estimates have been coming down lately, reflecting the impact of trade tariffs, economic softness overseas, and rising input costs. As the direct benefits of the tax law changes fade, we expect growth to decelerate in 2019. We continue to pay close attention to commentary from managements to get a sense of their outlooks going forward.

Outlook for 2019
The December panic has abated in the last few days of the year, but confidence among investors is still impaired. Investors will be monitoring economic indicators closely in 2019 for any signs of further economic deterioration. Tariffs and trade wars threaten to undermine economic growth across the globe, and we hope there will be a respectable resolution to this tension. Meanwhile, labor market remains strong, wages are rising, and consumer confidence is high. Inflation remains muted. Valuation, thanks to the ongoing stock market correction, is reasonable. Despite the near-term chop, we believe a thoughtful, long-term approach to risk assets will continue to be rewarded.

Christopher Lai
Senior Portfolio Manager
1/3/2019

Share:

Previous

Market Currents- 12/03/2018

Next

The Correction Continues...

Related Posts

Market Currents – 2/16/22
February 16, 2022
Market Currents – 2/16/22
No Comments
Market Currents- 12/04/2017
December 4, 2017
Market Currents- 12/04/2017
No Comments
Market Currents- 03/09/2017
March 9, 2017
Market Currents- 03/09/2017
No Comments

Leave a Comment Cancel reply

Your email address will not be published. Required fields are marked *

Archives

  • March 2023
  • February 2023
  • January 2023
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • January 2021
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • October 2017
  • September 2017
  • July 2017
  • May 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • August 2016
  • July 2016
  • June 2016
  • April 2016
  • February 2016
  • January 2016
  • November 2015
  • September 2015
  • July 2015
  • January 2015
  • November 2014
  • September 2014
  • May 2014
  • October 2013
  • June 2013
  • November 2012
  • May 2012
  • March 2012

Recent Posts

  • What Is Your Cash Doing For You?
  • Market Currents – 2/7/23
  • Market Currents – 1/12/23

Contact Us

  • Address
    NEW HARTFORD: 89 Genesee Street | New Hartford, NY 13413 | 315.624.7300

    ELMIRA: 1225 W. Water Street, Suite 1 | Elmira, NY 14905 | 607.734.2002

    SARATOGA: 16 Lake Avenue | Saratoga Springs, NY 12866 | 518.306.4220
  • Home
  • Investing
  • Planning
  • 401(k)
  • Team
  • Contact Us
  • Terms of use

Recent Posts

  • What Is Your Cash Doing For You? March 7, 2023
  • Market Currents – 2/7/23 February 7, 2023
  • Market Currents – 1/12/23 January 12, 2023
  • Strategizing For 2023 January 6, 2023

Login To Your Schwab Account

Copyright © 2023 Ascent Wealth Partners. All Rights Reserved.