It’s hard to believe that 2019 is almost over! Just a year ago the stock market was in the midst of a 20% correction and investors were nervously wondering whether a recession was on the horizon for ’19. Turns out those worries were misplaced!

Through mid-December, the S&P 500 has generated total returns of ~30% for 2019. That’s a very good showing. Only once in the last 20 years have we had a year this good (+32% in 2013).

The above graph puts this year’s performance into historical perspective. 2019’s strong returns are in the top 20% of all years since 1926. But as you can see, the range of historical returns is very wide, ranging from -43% in 1931 to +54% in 1933.

“Plan for the worst, but hope for the best.”

One of my favorite financial planning and investing adages is to plan for the worst but hope for the best. We’ve just had a great year for investing. But we want to remain sober-minded and not let these exciting returns cause us to take more risk (greed) than what’s necessary to achieve your financial goals.

In fact, now is a great time to take a step back and make sure your investments (and risk) are lined up with your goals. That asset allocation of 70% stocks and 30% bonds that you had a year ago might be closer to 75%/25% today after these strong gains in stocks. 

Financial Design Studio is here to help you get clear on your life goals and make sure you have a financial plan in place to achieve them! Wondering how this affects your future finances? Schedule a call with financial Design Studio, fee-only financial advisor in Deer Park, to discuss your portfolio today.