As we begin the 4th quarter, which is the busy Holiday Season, we hope you and your family are doing well, and that you have a Healthy Happy and Prosperous Season.
When you review your report, you will notice in the 3rd quarter the markets continued to reward and delight investors. Although the gains were somewhat “snail like”, steady wins the race. Despite recent gains, the markets are not feeling much love, as many investors are nervous and skeptical of the length of the bull market and the lack of volatility. Rightfully so, as it has been more than 300 days without a 5% or more correction. Although a meaningful correction can occur at any time, it would not necessarily signal the end of the bull market.
Thankfully, investors did not focus on headline news (noise) but instead focused on the solid fundamentals of the economy. Headline news was dominated by three hurricanes (Irma, Harvey, and Jose), “saber-rattling” between the United States and North Korea, and a lack of progress in Washington. It seems that our elected officials can only agree on disagreeing on everything- mostly along partisan lines.
The good economic fundamentals include:
- A Goldilocks economy- not too hot and not too cold with moderate growth and low inflation
- Continued low interest rates
- Wage growth up approximately 2.9% over the last year
- Low unemployment (despite what is considered a temporary glitch attributed to the hurricanes)
- Strong corporate profits
Hopefully these trends will continue for a long time.
We appreciate the trust and confidence you have placed in McCabe & Associates to help with your financial wellbeing.
As always don’t hesitate to contact us if you have any questions or concerns, and keep us informed about life changing events that may affect your financial goals.