Week 09 of 2020, The coronavirus impact is meaningful but not permanent.

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Despite last week’s pullback, equities are still up 6% over a 12-month period. Maintaining a long-term perspective can help investors see past short-lived economic headwinds tied to global shocks like the coronavirus. Just as healthy branches tend to bend but not break under the downward pressure of snow, we think the bull market will not be broken by a global shock if underlying economic conditions remain robust. By focusing on the bigger picture, investors can put this week’s market pullback into the larger macroeconomic context characterized by still-positive fundamentals.

Week 08 of 2020, Warning Signs?

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It’s said that you shouldn’t look a gift horse in the mouth, but we’d argue that it doesn’t hurt to check it for cavities occasionally. The stock market has certainly played the role of gift horse lately, returning over 4% so far this year and an average of 14% since early October, including reaching new all-time high last Wednesday. We have no objections to this latest rally. The economic backdrop, monetary policy settings, and financial conditions are all supportive of further longevity for this bull market.

Week 07 of 2020, Will the Coronavirus Infect the Market?

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Coronavirus concerns have sparked a few bouts of daily market volatility, but U.S. equities have largely taken the developing outbreak in stride, rising 4.4% so far, this year. Travel bans, shuttered factories and businesses in China, along with the rising number of confirmed cases around the world, naturally evoke an emotional response as well as questions around the potential implications for the investment outlook

Week 04 of 2020, No one ever made a dime panicking

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There’s an old investing phrase, “No one ever made a dime panicking.” The pieces are in place for the market to deliver a positive performance again this year, but when the path gets bumpier, make decisions aligned with your financial goals, not emotions or headlines. While not necessarily too far or fast, this market has come quite a ways in a short period. A good offense and defense can help long-term investors navigate both the ups and downs that may lay ahead.

Week 03 of 2020, Consumers Lead the Way

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We expect growth to slow in 2020 to just below the 10-year expansion average, with no catalysts such as tax cuts expected to reinvigorate growth. We expect consumers to fuel the economic expansion. In addition, interest rate cuts enacted last year should provide a modest support to the economy in the first half of 2020

Week 03 of 2020, Consumers Lead the Way

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We expect growth to slow in 2020 to just below the 10-year expansion average, with no catalysts such as tax cuts expected to reinvigorate growth. We expect consumers to fuel the economic expansion. In addition, interest rate cuts enacted last year should provide a modest support to the economy in the first half of 2020

Week 01 of 2020, make a New Year’s resolution to re-balance

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Stocks finished the year up 32% in 2019, the best annual performance in half a decade, led by technology which returned 50% in 2019, more than double the sector’s five-year average1. Lower returns and more volatility are expected this year. So, if 2019 came and went without you refitting your portfolio to your risk tolerance, it may be time to make sure your allocation to equities reflects your comfort with the risks of a loss, or to make sure that you are not overinvested in any one sector or asset class. In a globally integrated world geopolitical risks tied to investing are impossible to avoid. S&P 500 firms make 38.3% of revenues overseas while small firms composing the Russell 1000 firms make 37.1% of revenues off US soil2. The greater risk for long-term investors, however, is to get off course from your overall investment strategy and letting short-lived events derail long-term results. To stay the course through the uncertainties of 2020 and beyond, work with us to develop a disciplined approach to investing that helps you achieve your long-term financial goals.

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