HeadlinesSubmitted by Destination Wealth Management on December 27th, 2018
I’m in Asia today and writing this brief note at 4:00AM local time Thursday as I monitor what’s happening in financial markets.
The financial world as always remains a confusing mix of fundamentals and emotion that is assessed and monitored by the entire research team at DWM (no matter where we might be). We really do care about watching over your assets and doing all we can to keep you moving toward your goals.
It has been a crazy week in the market coupled with crazy headlines. Trying to make sense of short-term swings is difficult at best. But with sentiment running high, headlines tend to move markets. Today it looks as though the markets have reacted to more reassuring comments from the administration (as opposed to last week). See below.
“Kevin Hassett, an adviser to Trump, said Wednesday that Fed Chair Jerome Powell was “100 percent” safe in his position as the central bank head.”
Source: December 26, 2018 USA Today article by Janna Herron:
Fundamentals are what matter on the long term. Random headlines make markets swing on the short term and are impossible to predict. We believe, if you have the right allocation for your long-term goals and a thoughtful construction of portfolio assets, short term headlines will fade (as they have in the past).
With that said, we are continuing to look through portfolio strategies and possible opportunities as we move forward into the new year. We have positioned portfolios on the assumption volatility would come and it has. Moving into the new year, we will look to position portfolios based on what has occurred as well as what is expected going forward. We will keep you posted in these updates about our general thoughts in terms of allocation adjustments.
Feel free to reach out to your advisor or directly to me if you would like. In times like these, communication is important and that’s why we provide these weekly updates. Any specific questions you might have we are happy to respond to you as well.
We are always here to help. Hope you’re having a blessed and safe holiday season.