For those receiving cars for Christmas, it was a December to remember. Wish I could say the same for investors. In a month known for reliable returns, it was a month to forget when it came to your investments. There were any number of factors playing into the decline. Slowing global growth, a Federal Reserve determined to raise rates and global trade tensions top the list. Investors focused on the negative resulting in a decline of the S&P 500 index of -8.8% for December and -4.5% for the year.
During December, large cap stocks outperformed their small cap peers. Growth stocks modestly outperformed value. The energy and financial sectors led the market decline while utility stocks lost the least. Overall, it was hard to hide from the market decline.
International investments performed better but both the developed and emerging indexes were lower for the month. Both finished down for the year also.
The Federal Reserve raised rates for the fourth time this year. The Fed Funds rate target range is from 2.25% to 2.5%.
Noteable Market Comments in 140 Characters or Less:
- In the final 15 minutes of trading the S&P 500 saw a drop of 0.62% followed by a rally of 0.70%.
- If you were long Treasuries and short natural gas and Bitcoin, you had a great final month and a half of 2018.
- Yield curve will be one of the biggest stories in 2019 as it finished 2018 at its flattest level of the year and in over a decade.
Inspirational Thought for the Day:
"Starve your distractions. Feed your focus." - Kirby Smart
For those receiving cars for Christmas, it was a December to remember. Wish I could say the same for investors. In a month known for reliable returns, it was a month to forget when it came to your investments. There were any number of factors playing into the decline. Slowing global growth, a Federal Reserve determined to raise rates and global trade tensions top the list. Investors focused on the negative resulting in a decline of the S&P 500 index of -8.8% for December and -4.5% for the year.
During December, large cap stocks outperformed their small cap peers. Growth stocks modestly outperformed value. The energy and financial sectors led the market decline while utility stocks lost the least. Overall, it was hard to hide from the market decline.
International investments performed better but both the developed and emerging indexes were lower for the month. Both finished down for the year also.
The Federal Reserve raised rates for the fourth time this year. The Fed Funds rate target range is from 2.25% to 2.5%.
Noteable Market Comments in 140 Characters or Less:
- In the final 15 minutes of trading the S&P 500 saw a drop of 0.62% followed by a rally of 0.70%.
- If you were long Treasuries and short natural gas and Bitcoin, you had a great final month and a half of 2018.
- Yield curve will be one of the biggest stories in 2019 as it finished 2018 at its flattest level of the year and in over a decade.
Inspirational Thought for the Day:
"Starve your distractions. Feed your focus." - Kirby Smart
