An unknown economist once said, “Economic forecasting exists to make astrology look respectable”. January is full of such forecasting. A recent headline shouted the Dow Jones Industrial Average will reach 30,000 in the next 10 days. I don’t think anyone predicted what actually happened last week. We had the USMCA trade agreement passed by congress and signed into law, phase I of the China trade agreement was signed and the articles of impeachment against President Trump were finally signed and passed on to the senate. BTW, did anyone get one of Nancy’s commemorative pens? And, through all that, the 3 major equity indexes hit new, all-time highs.
So, understanding that I can’t predict the economy over the next year, I can’t forecast the markets, much less trying to time them and I can’t predict the 3 new perfect stocks to own in 2020, what I can report is what actually takes place and how these changes will impact our current financial positions. I can also comment on trends I see developing. One of those trends has to do with our retirement accounts. I didn’t coin this phrase, but I wish I had. Robert Hickok, a financial advisor, says “The tax law is written in pencil. Trusting Congress to keep the law the same for 50 years is irrational. Stay flexible, and don’t put all your eggs in one tax basket.” More on this next week.
With that, I’ve attached an article concerning 4 changes that could affect Social Security in 2020 and, my latest podcast, “People at Work to Money at Work”. This is the first in a 2 part series on transitioning from working to not working and how we all can take steps to improve our economic positions, regardless of where we are on that continuum.
Not sure what’s going to happen this week. About the only thing we can do is to wake up each day and give it our best. As always, should you have any questions or just would like to schedule a time to meet, please call or email so we can schedule something.
PS: This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.