With the economic news being what it is, you’d expect and hope that those who report the news would be fairly positive about what’s happening. However, the old newspaper adage is that “If it bleeds, it leads” has driven the wizards of smart to look for anything that might dampen what would normally be shouted from the mountain tops.
For example, technically, the equity markets stayed out of a bear market during the 4qtr2018, dropping 19.8%, bear markets are defined as a drop of 20%. So, after setting a new high of 2930.75 on September 20th, the S&P 500 set another new high of 2933.68 on April 23, 2019, a mere 145 trading days later. You would have a hard time finding this fact out.
Now, all the talking heads are talking about the rush to safety, getting out of equities and predicting a recession. The trade wars show no sign of ending any time soon. But there is one constant. Investors invest for income, whether it’s now or at a future point in time. The great American companies and worldwide companies pay their investors, whether it’s a dividend or increasing the value of company stock through stock buybacks. We just have to make sure we stay in the game and not get scared out of owning equities.
Jean & I had a great visit with our family in Memphis. But, now we’re back and it’s on to June and the 2nd half of 2019. Should you need to meet with me or talk, please contact our office so we can schedule a time. Now, let’s all go out and make the rest of this year our best ever.
Have a super week!