2019 Market Recap

2019 Market Recap

After suffering a steep decline in the 4th quarter of 2018, the S&P 500 spent the first half of 2019 recovering.  After spending nearly six months consolidating near the all-time high, the market finally pushed forward in the final two months of the year, ending on near the highs.

International & Emerging Markets

International and Emerging Markets were mixed throughout 2019.  While they ended on a positive note near the 2019 highs, foreign markets badly lagged their US counterparts. 

Fixed Income Markets

The bond market enjoyed one of the strongest years in recent memory after turning in a disappointing 2018.  Driven by easy Federal Reserve policy, fixed income markets worldwide began a steady march higher in the 4th quarter of 2019 and finished near the highs.

2019 Strategies

We entered 2019 with a cautious approach.  The markets were volatile and acting emotionally.  As the year progressed the volatility began to subside and by late October the health of the markets had improved dramatically.  As such, we began to become more aggressive in our positioning late in the year as it appeared the likelihood of a relapse was greatly diminished.

What’s Next

We anticipate 2020 will be two very different markets.  We began this year where we left off in 2019, with the market continuing to rally.  Sometime in the first half of this year we are expecting to see the market lose its upside enthusiasm as the 2020 elections gain steam.  Regardless of your views on politics, the market does not respond well to political uncertainty and while we don’t anticipate major bearish action in 2020 it is our view that the market may become more difficult.  Once the outcome becomes apparent, we hope to see the bull market continue higher for the foreseeable future.


Source material: WSJ.com Market Data      S&P 500 1-year chart as of 12-31-2019      EAFA 1-year data chart as of 12-31-2019       Bonds 1-year data chart as of 12-31-2019


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