4th QUARTER EQUITIES
Equity Market: The market was strong in the first half of the year as the Federal Reserve announced its change in policy direction. The third quarter was flat as concerns about the U.S./China trade conflict and possible recession worried investors. Those worries faded, however, as the Trump Administration announced a “first phase” trade agreement with the Chinese. The Federal Reserve also said it would maintain accommodative monetary policies. The market rallied in October and kept climbing until year-end. Volatility was low. It was one of the best fourth quarters in more than a decade.
The Dow Jones Industrial Average was up 4.75% for the quarter and 21.74 % for the full year. The S&P 500 gained 8.53% in the quarter and 28.88% for the year. The Nasdaq Composite index was up 12.17% in the quarter and 35.23% for the year. The Russell 2000 index was ahead 9.52% for the quarter and 23.72% for the year.
Other Equity Approaches: We are interested in Exchange Traded Funds as a part of client portfolios. These vehicles allow us to manage volatility but still provide exposure to value or growth stocks. For some clients, we also partner with firms to co-invest in private equity strategies.