Monthly Archives: January 2019

The Weekly Update

Week of January 28, 2019
By Christopher T. Much, CFP®, AIF®

For the first time in months, U.S. markets experienced little movement last week. The Dow and NASDAQ did have their 5th week of gains in a row, but their increases were small: 0.12% and 0.11%, respectively. Meanwhile, the S&P 500 broke its 4-week winning streak with a 0.22% loss. Internationally, the MSCI EAFE also posted modest returns, gaining 0.47% for the week.

What topics were on investors’ minds?

Despite the relative lack of market drama last week, investors still had plenty to consider. For example, the following details emerged:

• Conflicting messages came out on trade tension with China.
• The International Monetary Fund (IMF) downgraded its forecast for global growth.
• Corporate earnings season continued.

In addition, the longest Federal government shutdown in history ended. After 35 days, the House and Senate voted unanimously to reopen the partially closed government. President Trump …

Top 10 Pieces of Content from 2018

Taking a quick look back at 2018, we’re excited to share with you the content that our readers enjoyed the most. Grab a copy of the PDF with our most engaging pieces to save and share. http://bit.ly/2018_top_content

The Weekly Update

Week of January 21, 2019
By Christopher T. Much, CFP®, AIF®

U.S. markets were up again last week, as major domestic indexes posted their 4th weekly gains in a row. In fact, the S&P 500 was no longer in correction territory at Friday’s close—and was in the middle of its best yearly start since 1987.

For the week, the S&P 500 gained 2.87%, the Dow added 2.96%, and the NASDAQ increased by 2.66%. So far, all three indexes are up more than 5% in 2019. Internationally, the MSCI EAFE also ended the week in positive territory, posting a 1.06% gain.

What is driving the rally?

Once again, developments in our ongoing trade negotiations with China contributed to the performance. On Thursday, a report emerged that the U.S. was weighing whether to lift tariffs on Chinese imports. However, the Treasury Department said Secretary Steve Mnuchin had not recommended this action. Then, on …

The Weekly Update

Week of January 14, 2019
By Christopher T. Much, CFP®, AIF®

After months of volatility, markets relaxed a bit last week. For the first time since October, the S&P 500 went 5 days without a 1% gain or loss. The Cboe Volatility Index, or VIX, also fell to lower than 20—in December, it spiked above 35.

For the week, the S&P 500 added 2.54%, the Dow gained 2.40%, and the NASDAQ increased 3.45%. All three indexes are in positive territory for 2019. International stocks in the MSCI EAFE grew as well, with a 2.85% weekly gain.

What drove last week’s gains?
Updates on trade and monetary policy contributed to investor decisions, yet again.

1. The Federal Reserve made dovish comments.
   Last week, multiple Fed officials gave speeches indicating our central bank would carefully approach its interest rate decisions in 2019. Fed Chairman Jerome Powell described the policies as “flexible” and “patient.”
2. A trade …
   

The Weekly Update

Week of January, 7 2019
By Christopher T. Much, CFP®, AIF®

U.S. markets experienced more wild sessions last week before ending in positive territory as the recent turbulence continued. In fact, we are currently in the middle of some of the most volatile market performance in more than eight years. For the week, the S&P 500 gained 1.86%, the Dow added 1.61%, and the NASDAQ increased 2.34%. MSCI EAFE stocks also increased, posting a 1.42% weekly gain.

While the results may not seem especially dramatic, the path to get there certainly was. On Thursday, January 3, domestic stocks plunged, as factory data and a tech warning spooked investors. Then, the next day, the S&P 500, Dow, and NASDAQ each gained at least 3.3%. Friday’s performance marked one of the largest rallies since the beginning of this bull market.

What drove the market rally?

Two key events contributed to the huge jumps …