This is a holiday-shortened commentary. We wish everyone a Happy New Year! Please feel free to contact us with any questions or comments. 

MARKET RECAP

You didn’t have to visit Disney to go on one world-class roller coaster ride this week. The chart below from Marketwatch says it all. Stocks got off to a terrible start to the week on Monday, dropping by 2.7%. Trading resumed on Wednesday, after Christmas, with the biggest one day climb in terms of points for the Dow, over 1,000 (but not in terms of percentages). Thursday started down and ended with another monumental comeback. And on Friday, stocks were mixed. But for the week, US equities were up by just under 3% and international stocks by just under 2%.

The technical action looked good from Wednesday on. And it was similar to what we have seen at the low point of other market downturns. But three days is not nearly enough to say that a bottom is in, and it might just be a fake out.

Where we go from here will be impacted by political decisions in Washington. To give the economy and the markets a fighting chance we have to avoid a fumble by the Trump administration, especially regarding the trade war in China and the government shutdown. We want global markets that will grow, not contract. The Fed will have to do its part and keep interest rates in line with how the economy is responding.

There was some good economic news this past week in the US. The preliminary retail reports showed a strong holiday season.

SCOREBOARD

Past performance does not guarantee future results.

The purpose of this commentary is to provide readers with a summary of recent market and economic news. It is not intended to provide trading advice. Investors should have a long-term plan and should consider working with a professional investment advisor. Any discussion of investments and investment strategies represents the presenter’s views as of the date created and are subject to change without notice. The opinions expressed are for general information only and are not intended to provide specific advice or recommendations for any individual. The information and opinions contained in this material are derived from sources believed to be reliable, but they are not necessarily all inclusive and are not guaranteed as to accuracy. Any forecasts may not prove to be correct. Economic predictions are based on estimates and are subject to change. Reliance upon information in this material is at the sole discretion of the reader.