Monthly Market UpdateSubmitted by Texas Legacy Wealth Management on March 5th, 2019
February brought with it another strong month for stocks as markets continued to rally from the Christmas Eve lows. The S&P 500 finished the month roughly 3% higher which now leaves the index up about 11% for the year, and 18% from the lows in late December, but still about 5% from all-time highs (YCharts). We are happy to see a rally of this magnitude, particularly after a very difficult 4th quarter of 2018.
We have seen progress made on a number of risks that we outlined earlier in the year, but we would not be surprised to see continued volatility as there are still uncertainties surrounding global trade and Brexit. The news on the US and China trade war appears to be somewhat positive as the US announced that they will not implement additional tariffs that were threatened to go into place on March 1st. There is now optimism that an agreement could be reached toward the end of March as President Trump and Chinese President Xi Jinping are expected to meet at the end of the month (Wall Street Journal). The news around Brexit is not quite as clear with a number of different outcomes still possible between now and the initial deadline of March 29th.
Over the past month we have seen some improvement in our economic dashboard, and while we are still not giving an “all-clear” signal for stocks we believe the recent improvements warrant being fully invested at this time. We do not think a recession is on the horizon, but we wouldn’t be surprised to see volatility pick up over the next couple of months as uncertainties remain. That being said, we will continue to monitor those and other risks closely and are ready to make changes if needed.
Your TLWM Team
*Investment advice offered through TLWM, LLC., a registered investment advisor.
*The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
*The Standard & Poor’s 500 (S&P 500) is an unmanaged index. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment.
*Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
*Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
*Past performance does not guarantee future results. Investing involves risk, including loss of principal.
*You cannot invest directly in an index.
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*Stock investing involves risk including loss of principal.
*This document is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Texas Legacy Wealth Management and its representatives are properly licensed or exempt from licensure.