February 28, 2020 Markets Decline & The Fear of the Apocalypse
This past week we have witnessed the significant decline in the market indexes in response to fears of repercussions to the world economy from the spread of the coronavirus. As in almost every sharp market decline of the past, fear commands the human emotion to panic and in the case of investing, sell now and ask questions later. More recently as technology makes trading simpler and allows mathematics to control trading decisions, market moves are quicker in either direction.
Year End Thoughts
History will document that 2019 brought us above average investment returns in most sectors, and also brought worldwide trade wars, political infighting, natural disasters, well known corporate closures, major technological advancement in communication and medicine to name a few. The U.S. economy is continuing to expand at a moderate pace and unemployment numbers are at record lows. As long has been the case, consumer spending is what is keeping the economy growing. The share of internet sales continues to rise versus the big box store sales. What is bought, how it is bought, and how it is paid for is changing minute by minute. Consumers are clearly spending their pay at a healthy clip creating the jobs that keep the economy humming.
Yield Curve Inversion
Recent developments in the financial world have led to significant discussion regarding an Inverted Yield Curve and a looming recession. Equity markets around the world responded with a decline in prices. Economists, former Federal Reserve Chairpersons, market pundits, and every individual that can get in front of a camera are offering their opinions – some are qualified and some are not.
Happy New Year 2019!
As the year 2018 comes to a close, we reflect back on the past forty years that we have witnessed first hand in this investment business. What stands out most vividly in memory were the major declines. Most of us that experienced the “crashes” in 1987, 1990, 2002, and 2008 would agree that in each decline there was the feeling of dread for what each new day would bring. Coinciding with each crash was either political turmoil, global tensions, or some type of financial industry corruption. In more than one instance, it was all three. “Financial analysts” on television grabbed the limelight with prognostications of markets going to zero as markets imploded and the world falling into the abyss. Quite scary times to be an investor.
October 29, 2018 Lesjak Planning Perspective
The term “climbing a wall of worry” has been used for decades to describe how stock markets continue to rise in value as negative events, both domestic and worldwide, dominate the news. This seems to be the case this year as negative news monopolizes our daily lives including: tariff threats with our international trading partners, polarized political infighting here at home, Brexit struggling again, and recently immigration issues. Equity markets have run up to new highs right into October.
October 26, 2017 Lesjak Planning Perspective
Something very interesting has been happening to the S&P 500 Index. It has just completed an unprecedented string of continuous records. The index closed at new highs each day of the past week, each week in the past six, and each month in the past seven. Never before has this feat been accomplished.
August 2, 2018 Lesjak Planning Perspective – Mid Year Comment
As we pass the midpoint of 2018, cross currents are evident in every market sector as well as worldwide which continues to keep investors on the sidelines. Even professional money managers have cash holdings in excess of the 10 year average. It seems as if the overwhelming consensus is that the equity markets are bound to have a major decline. Cash is being hoarded at next to nothing returns waiting to swoop in and buy shares more cheaply after the supposed decline.
Happy New Year 2018!
Over the years we have all seen the equity markets rise, fall, then rise again. Our lives inevitably change due to circumstances beyond our control. At times, it may seem there is not much that we do actually control at all. That is why we set goals, look to the future, formulate a plan.