So 2018 wasn't a good year in the markets locally and abroad. The S&P 500 lost about 5% for the year, the Russell 2000, which is a grouping of small companies, lost 11% and the international stock index EAFE lost about 14% for the year.
Although these numbers don't seem too large, simply multiplying the percentages by some large account sizes will result in significant resources which seem to have vanished. And yet we remain optimistic about the markets and our economy.
Today let's focus on a couple reasons to be optimistic about our economy. First of all, what do you think about gasoline prices at your local station? I was so impressed when they touched $2.099, I had to take a picture as though I had seen a rare animal on the roadside.
Lower gasoline prices should result in lower prices to consumers or in technical terms, lower inflation. Who knows for sure, but lower inflation might cause the federal reserve to slow down rate increases as inflation seems less of a risk.
Did you realize the last bank in the US to fail happened in 2017? Bank failures peak during recessions and accelerate going into recessions, but we believe such an economy is still months away. If you would like to keep an eye on this indicator, click on the link below...
Stock prices seem inexpensive to us. Today may be the best time to invest for many months to come. Maybe it is a good time to discuss opportunities with your financial consultant! Keep the faith! Kt
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. Investing involves risk including loss of principal. No strategy assures success or protects against loss.