Shake and Bake – December 4, 2019
As we entered the fall, positive headlines on trade reduced volatility, and stocks moved to new highs.
- In November alone, the S&P 500 Index2 closed at 11 new highs (St. Louis Federal Reserve S&P data).
What happens if the U.S. and China fail to conclude a trade deal? It may simply be public posturing designed to wring out concessions, but the president has a way of shaking things up from time to time.
- On Tuesday, he said he liked “the idea of waiting until after the election” to reach a deal (WSJ).
- He also suggested that he might take aim at other countries.
Given the recent runup in stocks, worries about trade provided the perfect excuse for short-term investors to sell and take profits.
Investor’s corner
Recent economic data have generally been encouraging. We see it in models that forecast Q4 GDP, and we see it in early reports surrounding Black Friday holiday sales (Adobe Analytics, Consumer Growth Partners).
Yet, stocks never move up in a straight line, even in a strong bull market. The ride can be bumpy and aggravating, but patient, long-term investors with a well-diversified portfolio have been rewarded.
A well-designed financial plan is the roadmap for your financial goals. If you have such a plan, we applaud you. You’ve chosen the less-traveled path.
Created 2019-12-04 15:32:00
