The Northern Star 10/01/18 Special Update: Quarterly Report
Message from Jon
If I was a betting man...
The market is certainly making fools out of experts and winners out of fools right now! The markets are rallying and roaring, giving investors a warm and sometimes a wow feeling. If I was a betting man, earlier in the year I would have bet on the markets trading sideways and getting weaker by the month by now. 1
That was before the Tax Reform and its impact on corporations and their ability to adjust their accounting accordingly. 2 We are then pushed to concern with the tactics involved in negotiating better trade agreements with Tariffs and New Deals on NAFTA.3 This has been anything but smooth, but it has certainly been seen by many as beneficial to the future of corporate America and the US economy.
The presidency thus far has been quite interesting, and one could even say tumultuous, but it's hard to say that it hasn't been beneficial from the investing point of view. Not to say that the presidency's role is to influence the markets at all-I am saying that this presidency has been able to accomplish some key agreements that have thus far benefited investors.
According to Eric Kuby, CIO of North Star Investment Management, "the S&P 500 had the best quarter since 2013 with a 7.2% return!"4 Again, If I am a betting man, I am confident enough to believe that the Tariff talks and actions thus far will ultimately end up in the favor of the US and thus, benefiting US companies.
Do I think that we are still headed toward a correction in 2019? I believe that we are more likely to see this market stay around longer than expected but then dive lower and steeper than expected in my opinion. So at this point, we stay the course, remaining diligently searching for better investments for clients.
Till we speak again, enjoy the onset of Oct!