Click the video to watch David Reyes, The Retirement Architect share the latest in the market and how the year is ending for 2018!
Hi, David Reyes here. I thought it was a good time to give you another update on the markets since we’ve had such turmoil in this last week, and actually last month. Actually the market is down over 10% in the month of December, which makes it the worst December except for 1932 during the Great Depression, and that is serious.
The market is down from peak to trough from around September to today down about 14%. The German Dax is down over 20%. You got China down over 35% from peak to trough. So, the markets are really not doing very well right now.
What is happening here, just this last week, is we had the Federal Reserve in the FOMC Meeting where they actually talked about interest rates. They raised interest rates by 25 basis points. They also guided that in 2019 they would raise rates two more times. And so we’ve had increasing interest rates since 2016 when the Federal Reserve first started raising rates.
And the Federal Reserve is always a problem when you deal markets. When rates go up, typically, markets go down. It’s just the way it is historically. What I want to let you know, as much turmoil and problems we have had in the stock market, you, as my clients have had very little volatility, done really well with your allocations and the things that we do and why you hired us to protect your greater capital.
We want to reassure that everything is great, but I felt like it was time to give you a market update. Take care, Happy Holidays.