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In Case You Missed It - Stock Market Update

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As 2018 ends, you’ll likely be hoping that the market’s roller coaster ride is coming to a close.  How volatile has it been? On December 26, a single day saw a surge of more than a thousand points in the Dow Jones Industrial Average.1

But this year the ups have not outweighed the downs and you need to prepare for negative returns across portfolios. While there is always news that influences market prices, recent volatility can be attributed to these events:  

  • Department of Defense Secretary James Mattis resigned and voiced his concerns about the direction of U.S. foreign policy in his resignation letter.2
  • The U.S. government entered a partial shutdown after a budget bill did not pass due to a disagreement between the president and Congress over funding the border wall between the U.S. and Mexico.3
  • Treasury Secretary Steve Mnuchin called the six largest U.S. bank CEOs to make sure they had enough liquidity after the largest one-week decline in the market since the Great Recession, which further eroded confidence in the market.4  
  • The Fed increased interest rates another .25 percent to slowdown the economy and signaled more rate hikes could be coming in 2019.5

These factors combined with a continuing global economic slowdown and trade disputes created a vast amount of uncertainty in the market despite positive U.S. economic forecasts. Typically, markets struggle with uncertainty because it becomes more difficult to predict how companies will perform in the future.

While you may remember 2018 as a bumpy ride, it’s the long-term that defines investment success. Remember, you don’t have to win every lap to win the race. Contact your advisor for help staying on track and keeping the finish line in focus.

This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results.  This information should not be relied upon by the reader as research or investment advice regarding any funds or stocks in particular, nor should it be construed as a recommendation to purchase or sell a security.  Past performance is no guarantee of future results.  Investments will fluctuate and when redeemed may be worth more or less than when originally invested.

North Star Resource Group offers securities and investments through CRI Securities, LLC and Securian Financial Services, Inc. Members FINRA/SIPC. CRI Securities, LLC is affiliated with Securian Financial Services, Inc. and North Star Resource Group.  North Star Resource Group is not affiliated with Securian Financial Services, Inc.  North Star Resource Group is independently owned and operated. North Star Resource Group, 2701 University Ave SE, Minneapolis, MN 55414. 700396 / DOFU 12-2018

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