Monthly Archives: December 2018

The Weekly Update

Week of December 31, 2018
By Christopher T. Much, CFP®, AIF®

The close of the year provides an opportunity for investors to step back and consider the wider financial landscape. This week, we’re reviewing some key issues that defined 2018, as well as some factors that may influence financial markets in the coming year.

Year in Review

Wall Street began 2018 in rally mode, as enthusiasm for the 2017 Tax Cuts and Jobs Act spilled over into the New Year. Strong economic news encouraged investors, who put aside fears that rising inflation may lead to higher interest rates. What Wall Street did not see coming were the spring and summer trade disputes with China, Canada, Mexico, and the European Union. Fear of a global economic slowdown contributed to a sharp decline in stock prices in October. U.S. economic growth forecasts were tempered in November for 2019, with bull and bears …

Happy New Year

The entire CTS Financial Group team wishes you a very happy and healthy 2019.

Enjoy our holiday video here http://bit.ly/2zVLYII.

The Weekly Update

Week of December 17, 2018
By Christopher Much, CFP®, AIF®

Last week brought more volatility to the markets. While domestic indexes had some rallies as positive trade news emerged earlier in the week, by Friday, December 14, they had erased any gains. The last time major U.S. indexes ended in correction territory was March 2016, meaning they are now at least 10% below their highs from the past year.

For the week, the S&P 500 dropped 1.26%, the Dow lost 1.18%, and the NASDAQ declined 0.84%. International stocks in the MSCI EAFE also had a 0.89% weekly loss.

Why did markets struggle last week?
With last week’s declines, the S&P 500 was in the midst of its worst December since 2002. Concerns about global growth fueled much of the declines as China and Europe released economic data that missed projections. The ongoing trade tension contributed to slower growth in China, which …

The Weekly Update

Week of December 17, 2018
By Christopher Much, CFP®, AIF®

Last week brought more volatility to the markets. While domestic indexes had some rallies as positive trade news emerged earlier in the week, by Friday, December 14, they had erased any gains. The last time major U.S. indexes ended in correction territory was March 2016, meaning they are now at least 10% below their highs from the past year.

For the week, the S&P 500 dropped 1.26%, the Dow lost 1.18%, and the NASDAQ declined 0.84%. International stocks in the MSCI EAFE also had a 0.89% weekly loss.

Why did markets struggle last week?
With last week’s declines, the S&P 500 was in the midst of its worst December since 2002. Concerns about global growth fueled much of the declines as China and Europe released economic data that missed projections. The ongoing trade tension contributed to slower growth in China, which …

The Weekly Update

Week of December 10, 2018
By Christopher Much, CFP®, AIF®

Markets went for another wild ride last week, as major domestic indexes swung back and forth. By Friday, December 7, markets had posted their worst weekly performance since March—and the S&P 500 and Dow both moved into negative territory for 2018.

Overall, the S&P 500 lost 4.60%, the Dow declined 4.50%, and the NASDAQ dropped 4.92%. International stocks in the MSCI EAFE also struggled, posting a 2.27% weekly loss.

Let’s take a look at what is driving this challenging market performance.

Examining Recent Volatility

1. How volatile are stocks right now?
If recent market fluctuations have felt intense to you, there’s a reason: They are. The past three weeks have had the most volatility since 2008’s financial crisis. During this time, domestic indexes have ricocheted between gains and losses. The large swings have occurred both week-to-week and within daily trading.

2. What is causing …

The Weekly Update

Week of December 3, 2018
By Christopher T. Much, CFP®, AIF®

U.S. markets ended a volatile month on a high note Friday. All three major indices posted impressive increases for the week, buoyed by news from the Fed Reserve and international trade. The S&P 500 jumped 4.85%, and the NASDAQ finished up 5.64%—both gains are almost 7-year highs. Meanwhile, the Dow experienced a 2-year high, increasing 5.16%. Internationally, the MSCI EAFE rose 0.95%.

To better understand last week’s sharp rebound, let’s take a closer look at details surrounding comments by Fed Chairman Jerome Powell and various international developments.

Fed Developments

Last Wednesday, Powell inspired optimism in investors by claiming that interest rates are close to the current neutral range of 2.5–3.5%. His comments seemed to suggest that the Fed may throttle back interest rate hikes. However, minutes released on Thursday from the central bank’s meeting contained no indication that the Fed …