Although corporate earnings numbers and U.S. employment remain good, Wall Street seems to grow increasingly concerned about the “potential” trade war between the U.S. and China, and the public scrutiny of the technology sector (i.e. Facebook and Amazon). Thus the increase in market volatility in 2018 relative to 2017. The S&P 500 has moved by more than 1% in either direction on 22 days since the end of January – more occasions than over the entire prior 17 months. With this renewed volatility, there is a tendency for investors to consider withdrawing from equities. During periods like this, we often remind clients to remain broadly diversified and learn to turn off the day-to-day “noise” that permeates the 24-hour news cycle. Global economic data remains ahead of forecasts based on the Citi Economic Surprise Index. We understand that the threat of a trade war, growing concerns about accelerating inflation, and a downturn in tech stocks is concerning, but may be less so when viewed over time.
I found the CNBC interview of Jack Bogle, founder of Vanguard Funds, informative as well as instructive. I hope you find it helpful as well, and that it encourages you to remain focused on your long-term investing goals.
Robert W. Tull, Jr. is founder and president of Tull Financial Group, and a CERTIFIED FINANCIAL PLANNER™ professional in Chesapeake, Virginia. With more than 30 years of financial planning experience in Hampton Roads and beyond, he focuses on the areas of investment management, and retirement and estate planning. He also provides highly individualized personal and business advisory services.
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