In view of the developments this week regarding US-China trade, I asked our chief investment strategist, Byron Sanders, what his thoughts were and if we should be making any tactical portfolio adjustments at this time. I think his comments are particularly instructive and worthy of sharing. Here is what he had to say:
First Quarter Market Comment
April 8, 2019
After a disappointing final quarter of 2018, global equity prices extended their post-Christmas
rally and posted very strong gains in the first quarter of 2019. Broad domestic benchmark indexes were standouts, but International and Emerging Market equities also delivered solidly positive numbers. US investors, especially, were cheered by the Federal Reserve’s decision, announced in late January, to suspend the program of scheduled ¼% increases in their Fed Funds rate that had through 2018.
The Fed Blinks
January 31, 2019
World equity prices have extended their January uptrend over the past two weeks. Most broad-based indexes have recovered more than 50% of the declines that ended on December 24, 2018. Progress on resolution of trade disputes with China and reduced anxiety over the course of short-term interest rates appear to have flipped investor sentiment 180° from late December.
Key Questions for the Long-Term Investor
Focusing on what you can control can lead to a better investment experience. And actually, the only things you should be focusing on are the aspects that you can control. Much of what you hear and read from so-called investment experts is not grounded in fact, or any rigorous academic research. For today's "Fun Fact", we turn to our friends at Dimensional Fund Advisors, who have built a world-class investment firm based on academically-tested principles. Whether you utilize their solutions or not, it is absolutely essential that you understand this basic philosophy of investing. It is a primary component of what we do here at Artifex Financial Group and it's good for your financial health.
There are different kinds of financial planners to help manage your finances. There are the typical broker types who charge a commission every time they sell you a financial product. This is not so good because these brokers or salesmen are motivated by profit and do not always have your best interests at heart.