Looking Back at March
Thinking that the United States and China might be close to a trade deal caused the market to be relatively quiet in March – until the last week when the yield curve inverted. Essentially this means shorter term interest rates became higher than longer term rate. This yield curve inversion caused investors to become nervous. As a result, the market dropped on the last day of March.
Looking Ahead to April
April began with an upbeat market. Most companies are expecting to report good earnings and government reports indicate a strong economy. China has also posted positive manufacturing numbers. These are all positive indicators and may help the market continue its positive trend.
Our view has not changed from last month. Interest rates have stabilized and may even drop slightly toward the end of the year. As we begin to plan for future market movements, we are integrating some portfolios with additional dividend stocks, such as utilities, and/or bonds, when we feel it is necessary.
We are keeping our eye on events that may influence the market, like the tariffs and interest rates, as well as the overall housing market. We do feel that eventually the market will soften. This is why it is important that portfolios are balanced. We will continue to closely monitor economy developments as well as global events that affect the market and provide you with regular updates.
If you have any questions, please contact us.
NOTE: Investing in alternative investments is speculative, not suitable for all clients, and generally intended for experienced and sophisticated investors who are willing and able to bear the high economic risks of the investment. Investors should obtain and carefully read the related offering memorandum, which will contain the information needed to help evaluate the potential investment and provide important disclosures regarding risks, fees and expenses. Alternative investments may lack diversification, involve complex tax structures and have delays in reporting important tax information.
Also, it is important to note that LifeSteps Financial and its advisors are not licensed insurance agents or licensed mortgage brokers.