December 2018
We’re aware of the volatility and swings involved, yet in spite of the negative aura, we still remain focused on the fundamentals. Click here for the most recent commentary.
Capital Market Update
Category: Commentary
Capital Market Update
April 2019
The first quarter of the year has been a bit of a see-saw. Our portfolio managers on the Investment Policy Committee has an overview in their Capital Market Update commentary.
Market Movements
We recently saw some sharp, downward move in stocks. While the absolute numbers are historic, the percentage change is quite modest. In point of fact, we have just started to resemble a ‘normal’ market.
While this might be disconcerting to some, we don’t see it that way. A market in a relentless uptrend is unhealthy. A market with some volatility will give us the opportunity to invest some of your cash in stocks at better prices. We prefer to buy ‘on sale.’
The underlying fundamentals are healthy. The 2017 earnings reports are coming in very strong. Interest rates, while rising, are still extremely low by historic measures. Inflation is under control. The only thing that worried us was valuations. A quick, sharp downturn will present some opportunities.
This pullback is healthy, and will help sustain a healthy market longer term than the abnormal run-up we experienced over the past several years.