Stock Market Sets New Record High: What’s Driving It?

by Financial Design Studio, Inc. / October 30, 2019

financial advisor robert stoll cfp cfa chief investment officer draft commentary Profile AboutThe S&P 500 Index closed at a record high on Monday October 28. With all the noise this year about trade wars, slowing growth, and impeachment it’s a surprise to see the market power through these worries. 

What’s driving the record high market? 

First, third quarter 2019 earnings for large U.S. companies have been good. According to FactSet (below) about 3 out of 4 companies that have reported so far have beaten analyst earnings expectations. The only real weakness has been in Energy where oil prices have been weak.

Financial Advisor Deer Park Barrington Stock Market Sets New High Draft

Secondly, the Federal Reserve delivered its third straight interest rate cut this week. As we’ve mentioned before  the Fed has done a 180-degree turn since last year, when it was hiking interest rates. This has boosted investor confidence that the recent economic slowdown won’t turn into a full-blown recession.

It’s been a remarkable 12 months

The stock market has moved around a lot in the last year. This time last year, the market was in the midst of a correction which took the stock market down almost 20% in three months. Since the bottom in late December, the market has risen almost 30%!

Financial Advisor Deer Park Barrington Stock Market Sets New High Draft II

It goes to show how important it is to stay invested. No one can time markets. But we can always take what the market gives us and rebalance our portfolios to take advantage of these moves. 

Wondering how this affects your future finances? Schedule a call with Financial Design Studio to discuss your portfolio today.

Ready to take the next step?

Schedule a quick call with our financial advisors.

Recommended Reading

The Basics of Incentive Stock Options (ISOs) [Video]

What are you going to do with your Incentive Stock Options? This video breaks down how ISO work and their taxes.

Experienced Fiduciary Fee-Only Financial Advisors in Chicago

Podcast Episode 13: Financial Advisors on Silicon Valley Bank

This episode of Behind the Designs covers the Silicon Valley Bank collapse, what caused it, and what might be coming next.

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.