2019 was a tumultuous year for US equities. The S&P 500 Index is +30% YTD and pretty much every asset class saw a positive return on the year. Whether you were invested in Bonds, Gold, Oil, Real Estate, Crypto or Stocks - you made money. We saw the Federal Reserve completely reverse their hawkish stance on interest rates, and as monetary policy shifted - stocks followed suit. The Fed cut rates 3 times in 2019 and in September began expanding their balance sheet (now totaling $4.17 trillion). I believe 2019 is the perfect example of Marty Zweig’s trading mantra “Don’t fight the Fed.” What he means is when the Federal Reserve displays a favorable stance on rates or other monetary tools - commit to the side of the Fed. They are the director of Wall Street’s melodrama - when we’re seeing rate cuts and Treasury security purchases, it’s often interpreted as expansionary and therefore good for stocks.
Year End Thoughts
Year End Thoughts
Year End Thoughts
2019 was a tumultuous year for US equities. The S&P 500 Index is +30% YTD and pretty much every asset class saw a positive return on the year. Whether you were invested in Bonds, Gold, Oil, Real Estate, Crypto or Stocks - you made money. We saw the Federal Reserve completely reverse their hawkish stance on interest rates, and as monetary policy shifted - stocks followed suit. The Fed cut rates 3 times in 2019 and in September began expanding their balance sheet (now totaling $4.17 trillion). I believe 2019 is the perfect example of Marty Zweig’s trading mantra “Don’t fight the Fed.” What he means is when the Federal Reserve displays a favorable stance on rates or other monetary tools - commit to the side of the Fed. They are the director of Wall Street’s melodrama - when we’re seeing rate cuts and Treasury security purchases, it’s often interpreted as expansionary and therefore good for stocks.