Message from Jon
We experienced a rather difficult week last week when the S&P 500 fell to its worst week since December with a 3.1% decline and the NASDAQ with a 3.9% slide. The Dow, on the other hand, only dropped 2.6% with its 2nd worst week of the year.1 During times like these, as we always do, we evaluate our data, assess the risk levels, and remain patient.
In a world of insta-likes and daily in-depth analyses, I know this tactic might strike some as a contrarian approach. Staying your respective course is the easiest when everything is going up and difficult when everything is declining; however, this too will pass, and we will recover our bearings and push on once again.
The data is still green, and the indications we follow closely are all still intact and reminding us to remain calm and steady on.
The signs of a bearish market are reminiscent of a heartbeat monitor in that the pattern is full of sharp rallies followed by sharp declines, and from Point A to Point B—little progress. It does not mean you have chosen the wrong path-nor is it indicative of bad investments. Chasing returns in a bear condition is like playing golf in windy, blustering conditions and expecting your round to be the same as if you had played during sunny, calm conditions.
It is times like these that Warren Buffet reminds many that they may think they are investors, but in reality, they behave like traders.2 We have blustering and turbulent winds at present, and the forecast is the same for the remaining months ahead, so relax, be patient with your plan, and steady on!
Till we speak again, enjoy your week!
Fed Cuts Rates, Stocks Retreat
WEEKLY UPDATE - AUGUST 5, 2019
The Week on Wall Street
Last week, the Federal Reserve cut interest rates for the first time in more than a decade, in line with Wall Street's expectations. Ironically, stocks had their worst week of 2019.
The S&P 500 finished the week 3.10% lower. The Dow Jones Industrial Average and the Nasdaq Composite also posted weekly losses; the blue chips fell 2.60%, while the premier tech benchmark slumped 3.92%. International stocks tracked by MSCI's EAFE index dipped 1.06%.
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