posted on January 11th 2018 in Market Commentary with 0 Comments /

The End of the Financial Year

As we head into the final lap of 2017, it’s been a banner year for stocks not just in the U.S., but around the world.

Investors have been focused on the upbeat fundamentals — corporate profit growth sparked by economic gains at home and abroad.

The U.S. economy grew at 3.3% in Q3, according to revisions released by the U.S. Bureau of Economic Analysis. It’s the second quarter in a row that GDP has exceeded 3%, a feat that hasn’t occurred in the three previous years.

As Q3 concludes, S&P 500 earnings are up a solid 8.4% versus a year ago, according to Thomson Reuters. And analysts are forecasting a return to double-digit earnings growth in 2018.

Market Timing is Best Left to Gamblers

Strong gains in the market sometimes encourage investors to plow headfirst into stocks. Others openly wonder if it’s time to move to the sidelines.

Let’s take this moment to tell you — again — that market timing is a game best left to gamblers. We’ve had almost 60 all-time closing highs in the S&P 500 Index this year. That comes on top of a string of highs the market has recorded since 2013.

A new high means one thing — stocks closed higher that day versus the prior day. By itself, it doesn’t foreshadow an imminent downturn.

Table 1: Key Index Returns

Source: Wall Street Journal, MSCI.com, MarketWatch, Morningstar

MTD returns: Oct. 31 – Nov. 30, 2017

YTD returns: Dec. 30, 2016 – Nov. 30, 2017

*Annualized

**in U.S. dollars

Continue Reading

Other articles filed under Market Commentary

The Morgan Report: 2023 Q4 Review Outsource Busy

January 26, 2024 - Everyone I’ve been speaking with lately agrees that 2024 has hit with a bang and everyone seems to be very busy. Thankfully, it seems that it’s a good-busy with family, work, travel, and projects. The double-edged sword of a relaxing...
Continue Reading

The Morgan Report Q3 2023 Review: Breaking Bad… Behavior

October 12, 2023 - Quick Quiz: What do you think I feel is the most important role as an advisor with my clients? Financial Planning Behavioral Coaching Investment Management Resource Due Diligence I’ll answer below but let me provide some insights first. A study...
Continue Reading

The Morgan Report Q2 2023 Review: Sustained Motivation

July 13, 2023 - Here are two observations I have on life: Motivation does not sustain itself. Discipline and continued effort is a challenge. Staying motivated in one specific area of your life is a very challenging proposition. In reality, we are multitaskers juggling...
Continue Reading

The Morgan Report Q1 2023 Review: Trying To Be Super Awesome Is Not Sustainable

April 12, 2023 - When investing, it would be awesome to be super awesome all the time. Unfortunately, unlike the fictional world of Lake Wobegon or The Incredibles, reality is not very accommodating to over confident fantasies of perpetual awesomeness. As a father of...
Continue Reading

The Morgan Report Q4 2022 Review: The Year of Living Dangerously

January 11, 2023 - Danger can be defined as “something or someone that may harm you.” My role working with families as a financial advisor is to help them try to avoid dangers involved in our financial world which I believe is interestingly influenced...
Continue Reading

Return to Blog Home