After an 8-year bull market and new political uncertainty, should you be more concerned about volatility risk?
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 “risk-on” theme persisted through the first quarter as improving economic data trumped elevated geopolitical uncertainty, both in the U.S. and abroad. Economies in the U.S. and Europe continued to gain traction and the U.S. entered its 93rd month of expansion. At the same time, important and potentially divisive elections in Europe, an impeachment in South Korea, heightened tensions with North Korea, innuendo around Russia, civil war in Syria, the Brexit trigger, and an unconventional and inexperienced administration in the U.S. did not rile investors.
What’s riskier… gambling or investing? Do political parties or the Fed have a bigger impact on markets? View the webinar recording for more insight.
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.