Newsletter and Blog

With China's government stepping in to provide liquidity economically as a result of the concerns over the coronavirus, the general markets have rebounded nicely and also quite rapidly.

We saw an outsized sell-off on Monday resulting from the concerns and speculation on the outbreak of a new virus in China. Oil and Stocks both domestic and abroad sold off abruptly over the contagion risk and containment China and the rest of the world is working on but still have not identified the solution for as yet.

We are now beginning the Impeachment Trial of President Trump, and while I think this may all end up being a non-issue with regard to Wall Street, it is certain to captivate the hearts and minds and social media accounts of the public. We are anticipating an increase in the volatility for a time, but we are nevertheless leading to a positive year end.

At present, my opinion is that the likelihood of these issues getting worse in the near future and causing a sell-off and decline in the market is pretty low, but we are still aware of the fact that in this day and age, things could spin radically out of hand quickly.

FOMO: Fear Of Missing Out is not the punchline of a bad joke. It is a real issue with investors of all walks of life. FOMO happens whenever we see a rally of significance in the markets that catches investors by surprise. This triggers a "get on board or lose out" response, and they end up investing at highs hoping they will gain like their friend, buddy, or confidant and not be on the outside looking in.

We are seeing a renewed interest in the equity side of the investing world take shape. With the Phase 1 trade agreement looking good, PM Boris Johnson's party taking a decisive victory in the general elections and now focusing on BREXIT, and the FED standing put for now on the interest rate changes, we are seeing a solid footing in the markets.