Vicki Simpson, Trade Analyst, SoundView Advisors
For as long as I can remember, a common slogan in my family has been, “No news is good news.” In Midwestern, small-town terms, this really means, “nothing so scandalous has happened that would cause someone to call home to gossip about it”.
The fourth-quarter of 2019 seemed like there was not a lot of news, which, truly, feels like good news! We heard a lot of the same ol’ gossip about trade tariffs, slowing global growth, political factors like impeachment and the upcoming election year. The Fed did cut rates another .25% in October, but maintained course at the December meeting—both moves contributing to the bond markets flattening out towards the end of the year. The US markets had a couple bumps leading up to the Fed’s interest rate decision in December, but they rallied and returned to their previous course soon enough. All equity markets were up for the quarter, as you can see in the graph below. The upward momentum of international and emerging markets may serve as ballast in portfolios if US growth continues to slow and market performance no longer dramatically outpaces the rest of the world.
No one can say with certainty what is in store for 2020, but you can be sure my mother will be calling me if Ms. Jane starts bringing a strawberry Jell-O salad to the potlucks rather than her standard lime Jell-O salad. A simple ingredient change? No news? Good news. Another variety all together? News? Bad news. A true sign of a disruption in the Jell-O salad market as the strawberry variety has been my mother’s signature dish at any gathering. Volatility lies right around the corner in the Midwestern small-town potluck forecast!
As always, your team at SoundView is working hard to evaluate all areas that impact your investments. News is news here and we strive to keep you updated and informed on any relevant changes. Please reach out to your Lead Advisor should you have any questions about your portfolio or if you want to know exactly what Ms. Jane is putting in her lime Jell-O salad; we hope for strawberry, but we can help you plan for the unforeseen (and perhaps inopportune) lime. I can hear gossip now!
