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2nd Quarter Market Commentary

Manage Your Financial Wellness

“In an ever-changing market environment, a good advisor may boost your Financial Wellness”


Financial Markets
As we enter the 2nd Quarter of 2019, current financial markets display moderate uncertainty and continued growth. Of course, the 4th Quarter 2018 experienced a near correction of minus 13.52%. Market values have rebounded, but we have continuing sources of market uncertainty, including the government shutdown, continued tariff troubles, globally weak exports, Brexit struggles and the “wait and see” contagion. These have slowed growth from a robust 3.1% at the end of 2018.In the first quarter, this year domestic equities have had a strong bounce-back and growth continues at a good pace. All this and we have a “patient” Fed, that appears happy with its Federal Funds Rate of 2.50%. Whereas neutral interest was seen in the 4% range in 2011, now the current 2.50% rate is seen by the Fed as a neutral rate. If so, it’s possible this Fed will achieve the proverbial “soft landing” of a mild recession starting sometime in the next 12 – 18 months.

In the light of this environment, HARRIS & ASSOCIATES recommends a continued growth strategy. Most investors may want to scale back from aggressive allocations that were the place to be from last December 26th when the over-sold equities began to move higher.

Your Financial Wellness

The most important lesson from the last year of this bull market is our need for financial wellness professionals.

Just as we all value the help of health care professionals, the assistance of a financial advisor is crucial to establish and maintain financial wellness. The parallels are many.

Both professional health care providers and professional financial advisors recommend regular checkups. Along with physical diet and exercise, financially we need properly managed cash flow and savings. When illness or injury occur, you may need surgeries, drugs and recovery time. When unexpected expenses arise, you may need withdrawals and increased savings, perhaps leading to reduced spending and modifying goals.

Like physical wellness, financial wellness does not just happen. But in both cases your reliance on a professional may make a huge improvement. The help of physicians is generally accepted. But the help of a financial advisor is not as widely acknowledged. However, the facts show investors without an advisor are much more susceptible to the emotional mistakes of investment behavior biases.1 As a result, they sell low, buy high and damage their long-term performance and financial wellness.

As your financial wellness partner, HARRIS & ASSOCIATES is prepared to help you manage cash flow, grow assets, protect gains, control distributions, respond to emergencies, and see that you are protected from major financial risks.

So be smart about money. If you haven’t already, engage a good financial advisor. Use your advisor as your personal CFO to lead you toward and help maintain tiptop financial wellness.

Sincerely,

 

 

David L. Harris, PhD, ChFC, CFP®
Wealth Advisor & Personal CFO
HARRIS & ASSOCIATES

(310) 318-3700
www.harrisadvisory.com

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1 Roberts, Lance (2017, September 25). Dalbar 2017: Investors Suck at Investing & Tips for Advisors. Retrieved from https://realinvestmentadvice.com/dalbar-2017-investors-suck-at-investing-tips-for-advisors/

Harris & Associates is a Registered Investment Adviser. This commentary is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Harris & Associates and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Harris & Associates unless a client service agreement is in place.

[If you would like a confidential review of your portfolio, call for an appointment, or book your meeting on-line at www.harrisadvisory.com. It is always free and without obligation.]