How do you know if you have enough in the face of all the uncertainty life and the markets bring about? Here, we delve into our process.
Escalating trade tensions triggered a sharp pullback in August, giving up July’s gains. Global stocks were up 16.6% YTD as of July 31, and now show 12.1% gains through August 6. Now is the time to re-evaluate your tolerance for ups and downs in the market. Get a plan, keep it simple, and stay invested. Those who can stick with a long-term plan will continue to be rewarded.
Almost no one predicted the surprisingly strong 2019 year-to-date returns for stocks and bonds. The stock market is currently indifferent about a trade war or recession, while declining long-term bond yields indicate the bond market takes a different view. Most things investors worry about are not really important. What is important are the four “deep risks.”
Stocks retreated in May while bond yields fell to new lows for the year. After several months of optimism for a trade deal, the US and China appear no closer to reaching a deal than they were at the end of last year. With revamped trade tensions at the forefront, global stocks retreated 5.9%.
Sometimes it’s tough being a shareholder in companies that are changing the world. Uber and Tesla have had a rough go of it recently. Picking winners is hard. Fortunately, you don’t have to.
The rally in stocks has continued through the first four months of the year despite a slowdown in earnings growth. Also, what flying commercial can teach us about investing.