January 2 2019 Market Update
A Wild Ride into the New Year
Equity markets were surprisingly exciting in the last week of the year. While both the S&P 500 and Dow Jones Industrial Average are down for 2018 (as of December 28), both indexes had huge single-day rebounds– the largest in almost ten years for the S&P 500 and the largest in history for the Dow.[1]
These kinds of dramatic movements have many investors asking about what comes next as we head into the New Year, and whether they should be worried.
Our simple answer is no, we do not recommend worrying.
With a prudent strategy, volatility is not something you need to escape – just as bull markets aren’t something you need to chase. We’ve met this week with equanimity because we know that volatility might always be lurking around the corner, and we build investment strategies accordingly.
Of course, we do look at opportunities in every market environment, and we might recommend some tactical moves if they align with your overall strategy. These might include tax loss selling or rebalancing.
That said, we know these periods can still be stressful. If you have any questions or concerns at all, we encourage you to contact us to talk about your portfolio and your personal investment strategy.
In the meantime, we want to take this chance to thank you for the trust and confidence you’ve placed in our team. This year was a period of growth and investment for us at JSF Financial, and we’re excited for the opportunity to serve you and your families into 2019 and beyond.
JSF Financial
Securities are offered through Mid Atlantic Capital Corporation (“MACC”) a registered broker dealer, Member FINRA/SIPC.
Investment advice is offered through JSF Financial, LLC,which is not a subsidiary or control affiliate of MACC.
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The information expressed herein are those of JSF Financial, LLC, it does not necessarily reflect the views of Mid Atlantic Capital Corporation (MACC). Neither JSF Financial LLC nor MACC gives tax or legal advice. All opinions are subject to change without notice. Neither the information provided, nor any opinion expressed constitutes a solicitation or recommendation for the purchase or sale of any security. Investing involves risk, including possible loss of principal. Indexes are unmanaged and cannot be invested in directly.
Historical data shown represents past performance and does not guarantee comparable future results. The information and statistical data contained herein were obtained from sources believed to be reliable but in no way are guaranteed by JSF Financial, LLC or MACC as to accuracy or completeness. The information provided is not intended to be a complete analysis of every material fact respecting any strategy. The examples presented do not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy. Diversification does not ensure a profit or guarantee against loss. Carefully consider the investment objectives, risks, charges and expenses of the trades referenced in this material before investing.
Asset Allocation and Diversification do not guarantee a profit or protect against a loss
The S&P 500 Index is an unmanaged, market value-weighted index of 500 stocks generally representative of the broad stock market.
The Dow Jones Industrial Average is a price-weighted average of 30 large stocks traded on the New York Stock Exchange and the Nasdaq.
Source:
[1] https://www.bloomberg.com/news/articles/2018-12-27/asia-stocks-face-mixed-open-after-late-u-s-bounce-markets-wrap?srnd=premiumand https://www.wsj.com/articles/stocks-slide-after-record-surge-11545889351?mod=article_inline
