Could The Market Move Even Higher?

by Financial Design Studio, Inc. / July 26, 2019

The market has been moving higher for the last ten years! Today marked another new high. So can it continue this pace of growth ahead? Here are a few things to consider as you consider whether your investments need a reallocation.

financial planner can the market move higher chart

Presidential Election in 2020

Next year we have a Presidential election. We are just beginning to hear a handful of the policies that opponents on either side sharing who they favor.

As the next year continues we will start to have a better idea of whether we are expecting major changes from today’s current political climate.

The Fed & Interest Rates

In the next two weeks we do expect the Fed to lower interest rates by either a quarter of a percent or a half of a percent. The main reason we believe the Fed will move to lower rates, even minimally, is to avoid being the cause of a recession.

They don’t want a recession to happen and then be blamed for causing it because they held interest rates too high for too long.

Trade Concerns with China

This doesn’t seem to be an issue that is going away anytime soon. We hear of progress only to hear that it wasn’t really progress. The market seems to be holding hope some deal can be struck, but as time continues that hope could start to diminish. We hope that a deal can happen so the market doesn’t lose the returns from the past ten years.

We do believe that corporations are still strong and they are showing that in the recent quarterly earnings reports. There have been mixed results but overall fairly positive given the backdrop of items above we’ve noted. As always if you sense it’s time to make some allocation changes to your portfolio this could be a good time!

Wondering how this affects your investments? Schedule a call with Michelle and Steve to discuss your portfolio today.

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Schedule a quick call with our financial advisors.

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Financial Design Studio, Inc.

We are financial advisors in Deer Park and Barrington, IL. A team with a passion for helping others design a path to financial success — whatever success means for you. Each of our unique insights fit together to create broad expertise, complete roadmaps, and creative solutions. We have seen the power of having a financial plan, and adjusting that plan to life. The result? Freedom from worrying about the future so you can enjoy today.