March 2018 Market Insight

April 3, 2018

A Good Time to Unplug A Good Time to Unplug   

It’s a good time to unplug… not from your investment strategy: from the media!  March has brought the volatility that we’ve been expecting and has provided the media with a never-ending stream of headlines.  While it’s fun to dig into the daily news, when it comes to your investments the best idea is to put on blinders and stay the course.   

Here are some of the top headlines from March: 
   • “The Dow books its worst month since 2016” 1 
   • “History shows March often a strong month for the stock market” 2 
   • “JPMorgan exec warns stock market could fall by 40%” 3 
   • “Dow Plunges as trade war fears rock Wall Street” 4 
   • “Investors Look Beyond Trade War Fears” 5 
   • “Dow Surges on strong jobs report” 6 
   • “Wall Street’s worst week in more than two years” 7 
   • “Dow rebounds by 669 points, its best day since 2008” 8 

This type of bipolar manifestation is to be expected at this point in the market cycle, but it can be unnerving nonetheless.  We are here to help you navigate these uncertain waters by providing a disciplined, unemotional game plan.    

In other news, the Fed moved forward in raising the Fed funds rate by 0.25% in March. This was already priced into market expectations.  The Fed reiterated that this is the first of 3 hikes in 2018 and raised  the number of expected rate hikes in 2019 and 2020.  Raising rates won’t necessarily be a problem for the economy as long as there continues to be economic growth and strong earnings.    Have a wonderful April! 

IndexMarch  YTD 2018
S&P 500 Composite (Large Cap)-2.54%-0.76%
Russell 2000 (Small Cap) 1.29%-0.08%
MSCI World Ex-Us-1.73%-2.04%
Barclays US Aggregate Bond 0.64%-1.46%

 

 1. http://markets.businessinsider.com/news/stocks/stock-market-news-opening-bell-march-1-2018-2018-3-1017560153 
2. https://www.marketwatch.com/story/history-shows-march-often-gives-stock-market-investors-something-to-celebrate-2018-02-28 
3. http://money.cnn.com/2018/03/08/investing/jpmorgan-market-correction/index.html 
4. http://money.cnn.com/2018/03/22/investing/dow-jones-trade-war-china/index.html 
5. https://www.nasdaq.com/article/stock-market-news-for-mar-6-2018-cm930649 
6. http://money.cnn.com/2018/03/09/investing/stock-market-dow-jones-wage-growth/index.html 
7. http://money.cnn.com/2018/03/23/investing/dow-jones-stocks-trade-war-china/index.html 
8. https://www.usatoday.com/story/money/2018/03/26/stock-market-mounts-big-rebound-trade-war-fears-ease/458009002/

This market update should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. Whitcomb & Hess, Inc. is registered as an investment adviser with the SEC. The firm only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability. All investment strategies have the potential for profit or loss. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for a client's portfolio. There are no assurances that a portfolio will match or outperform any particular benchmark.   

Keywords: market insight
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