Crazy Market!

Wow what a 2019 stock market! One of the best in a long while.

Then along comes 2020, and the market gives up a chunk of profit and drops almost 2000 points on the Dow Jones industrial average.

What’s going on?

Many market naysayers are citing plenty of issues, problems and speed bumps, suggesting a market slump. Some of their headlines include: 2019 was such a good year you can’t have two great years in a row, an 11 year old bull market might be tired, China tariffs, and issues coupled with coronavirus add to market turbulence. Political issues. Impeachment. International unrest, civil protests, and an upsurge in social unrest. Brexit. The inversion of the yield curve might be a recession indicator and cause a major market decline.

Geez, all these talking points may have built a giant wall of worry. Well, let’s discuss some positive topics to support the continuing market advance:

First two-thirds of the S&P index companies have reported good earnings. Forecasts for 2020 are good and filled with reasonable growth potential. Good earnings mean higher stock prices. Increasing employment that is broad-based has lead to higher wages and more consumer spending, all good for the market and of course our economy. Low energy costs, and consistent low interest rates are ever present. The stock market reacts positively to stable and low interest rates. Federal Reserve chairman Jerome Powell recently reminded investors that 85% of the US economy is domestic somewhat shielding our economy from some foreign weaknesses.

Lastly, 2020 is an election year. Did you know, that since 1952, the Dow Jones industrial average has risen 10.1% on average during election years when a sitting president has run for reelection, according to Stock Traders Almanac, a widely used publication to track historical market patterns.

Surviving good and bad markets, pre-retirees and retirees, should have a retirement income plan and utilize professional money management to help guide their investments. Rest assured, your investment team at Woloshin Investment Management is at the ready. We are researching, building, and professionally managing solid investment with a goal to help you meet your portfolio and retirement needs.

We want to acknowledge the confidence you have placed with us and wish to say “Thank you” for all of your investment business.

Your friends at Woloshin Investment Management