While politics grab headlines ultimately, it’s economics and earnings that drive long-term portfolio returns. While we expect political uncertainty to continue as we approach the 2020 presidential election, it’s important to note that, historically, markets have returned 10% on average regardless of which party controlled the White House or Congress
Does administering medicine to a healthy person prevent them from getting sick? This is the question facing the market. The Fed cut interest rates last week for the second time this year – monetary medicine aimed at prolonging the current economic expansion. Meanwhile, the patient isn’t exactly in dire need of treatment, with the U.S. economy exhibiting a reasonably clean bill of health, underpinned by a strong consumer.
It’s long-run performance, not daily, weekly or even monthly moves that should be the measuring stick for your financial goals. That said, proper expectations can help set the stage for appropriate investment decisions as the market twists and turns