Monthly Archives: November 2018

The Weekly Update

Week of November 26, 2018
By Christopher T. Much, CFP®, AIF®

Last week was a tough one for markets. The S&P 500 dropped 3.79% and experienced its worst results during a Thanksgiving week since 1939. While the index officially entered correction territory on Friday, it closed 10.2% below its most recent record high. Meanwhile, the Dow and NASDAQ continued the downward trend, losing 4.44%, and 4.26%, respectively. International stocks in the MSCI EAFE also declined, posting a 1.12% loss.

Reading these results may feel quite unpleasant and elicit concerns about what is ahead. As is often the case, the story behind the numbers can help us understand the complexity and what this performance means.

Why did stocks drop?

Plummeting oil prices were one of the biggest drivers behind the market’s losses, as investors worried that too much oil is available. These concerns have contributed to oil experiencing seven weeks of losses …

A Time to Be Thankful

Wishing you a wonderful Thanksgiving filled with good food, enjoyable company and fond memories.

The Weekly Update

Week of November 19, 2018
By Christopher T. Much, CFP®, AIF®

Markets experienced more volatility last week, as perspectives on trade, tech, and retail pulled investor sentiment back and forth. Although domestic indexes were up on Friday, November 16, they still posted losses for the week. In all, the S&P 500 dropped 1.61%, the Dow declined 2.22%, and the NASDAQ gave back 2.15%. International stocks in the MSCI EAFE ended the week down 1.51%.

A major topic over the past couple weeks has been the ongoing, significant declines in oil prices. Last week, we did experience one turnaround—on Friday, signs that oil production may decrease next month helped oil prices start to rebound. This pricing increase contributed to S&P 500 energy stocks rising 1.1%.

In addition to oil’s current trajectory, let’s examine some of the key October data we received last week:

1. Retail Sales Beat Projections
   October’s retail sales were the …

The Weekly Update

Week of November 12, 2018
By Christopher T. Much, CFP®, AIF®

Last week, markets experienced a 4-day winning streak before dropping on Friday, November 9. Despite those losses, domestic indexes posted gains for the week. The S&P 500 increased 2.13%, the Dow added 2.84%, and the NASDAQ was up 0.68%. International stocks in the MSCI EAFE had slight growth, ending the week up 0.20%.

From interest rates to corporate profits, investors had a number of topics to consider. In this update, we want to focus on two key details that drove markets: oil prices and midterm election results.

1. Oil Prices Declined
Oil prices continued to fall last week, posting the most consecutive daily declines in at least three decades. In fact, West Texas Intermediate (WTI) futures, a key oil benchmark, is officially in bear market territory. WTI has fallen more than 20% below its highest point over the past year.

What …

The Weekly Update

Week of November 5, 2018
By Christopher T. Much, CFP®, AIF®

Markets posted strong gains last week after struggling for much of October. The S&P 500 had its best weekly performance since May, and the NASDAQ had its first positive week since September. Despite domestic markets dropping on Friday, November 2, the S&P 500 added 2.42%, the Dow increased 2.36%, and the NASDAQ gained 2.65%. International stocks in the MSCI EAFE were also up 3.34%.

What drove market performance last week?
We received a fair amount of data and reports, with the following details holding particular weight for investors:

• U.S.–China trade updates were inconsistent.
  Stocks fluctuated widely on Friday, in large part because of contradictory updates on a potential trade deal between the U.S. and China. President Trump said the two countries are a lot closer to an agreement. Larry Kudlow, Trump’s economic advisor, shared a different perspective, indicating the U.S. …