Of Flowers and Weeds....Apr 5, 2018 | Wealth Management
As Kentucky weather continues to resist the adoption of spring, the stock market continues to resist any particular direction. The market fluctuated wildly over the first quarter only to end basically flat. The first day of the new quarter brought losses across the board with tech stocks leading the way on the wings of renewed trade fears with China. Additionally, President Trump increased his attacks on Amazon claiming it is propped up on the shoulders of the US Postal Service at the detriment of small business. This continued to fan the flames of uncertainty adding to the already growing incertitude of the ongoing tariff- tantrum between the US and China. One thing is certain, volatility will always be in the market as much as rain is a part of Kentucky spring. Those of you who have enjoyed this journey with us throughout the years realize there is no reason to panic. Take this time to review your investment objective and the percentage of your assets allocated to stocks. Maintain a long-term perspective and realize 5% and 10% stock market “corrections” have always been part of market behavior but investors have been rewarded in the long-run. The economy is strong and a new earnings season, the first under the new tax law, is just around the corner of which could show to be very favorable to stocks especially those with already strong fundamentals. Combine this with April historically being a good month for stock performance, we are optimistic in the market’s ability to shed the distractions and possibly regain some upward momentum. I am not dismissing any of the headwinds contributing to the current market unrest as they warrant continued attention. We don’t know how the tariff tiff will end or if NAFTA will be pulled into the fray. Either of which could end up adding to investor anxiety and increasing market volatility. We do know, however, that proper asset allocation and stock selection are more important now than ever before.
So, enjoy spring in Kentucky and enjoy spring in the markets. The flowers will bloom but you might have to fight some weeds along the way.
“In the spring I have counted one hundred and thirty-six different kinds of weather inside of four and twenty hours.” -Mark Twain
Have a great week!
Jeff Schriefer, Vice President
Senior Wealth Advisor
Bank of the Bluegrass & Trust Co.
While believed to be accurate and from sources deemed to be reliable, the presented information is general in nature. It is not intended to provide, and should not be relied on for, accounting, investment, legal or tax advice. Consult the appropriate professional advisor for more complete and current information. Investors should consider their individual financial circumstances and the inherent risks of investing with their investment advisor. Services provided by Wealth Management at Bank of the Bluegrass & Trust Co.: Are not FDIC insured*Are not bank guaranteed*May lose value*Are not guaranteed by any state or government agency.
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