As the year turns, investors are bombarded with predictions about what 2017 may hold. Soothsayers will suggest strategies to avoid the next crisis or how not to miss the next great opportunity.
Context and perspective to improve behavioral finance patterns and make smarter financial decisions. A focus above the fray, on what matters most for effective financial outcomes and goal achievement.
The new US president is inheriting one of the strongest economies that has been handed to a new President in recent history (based on 3Q GDP). Since the 1970’s, only George H.W. Bush and Jimmy Carter assumed the office with higher GDP growth rates.
Investor angst over the unexpected vote on Brexit was short-lived with a “risk-on” theme returning to the markets in July and leading to stock market highs for the Dow, NASDAQ and S&P 500 in August. Highly unusual election antics and continued geopolitical concerns on a number of fronts did not dampen investors’ risk appetite or their quest for yield.
Noise generally attracts more attention than silence. Being aware of certain things you don’t see or hear, however, is sometimes more important than the obvious.
Brexit, Regrexit, Bremorse, Breturn? The 2nd quarter was reasonably uneventful and markets were relatively placid until June 23rd, when British voters narrowly approved the Brexit referendum. Investor complacency was replaced with shock, and markets reacted fiercely. Volatility spiked, global bond yields fell sharply.