Good morning! Below are some insights on how fund managers are adjusted to the continued market volatility, mortgage trends, and how to avoid being your own worst enemy to your portfolio.
INVESTING & THE ECONOMY
U.S. fund managers are retreating from consumer-related stocks and increasing exposure to loan-focused companies as investors worry the U.S. government shutdown – now the longest in U.S. history – may leave some deep scars on the economy.
During the Roaring ‘90s, “The Maestro” Alan Greenspan was at the helm of the Federal Reserve overseeing one of the most remarkable periods of growth in U.S. history. The internet was booming, and beginning to show its true potential, and demand from the emerging world was beginning to roar as globalization took hold.
In December, the rate of existing US home sales cratered to 4.99 million, 10.3% below the mark from the year-ago period, according to data released earlier this week by the National Association of Realtors. That’s the steepest decline in more than seven years, and it followed year-over-year declines of 7.8% in November and 5.1% in October.
Decisions about money aren’t always rational, even when we think we’re acting logically. Common tendencies that make us our own worst enemies when investing include: selling winning investments too soon or holding onto losers for too long, loading up on too-similar assets or failing to assess the future implications of today’s decisions.
With the new year quickly approaching, this is a great time to consider your goals for 2019. With this in mind, have you ever considered setting intentions instead of resolutions for the new year? Intentions are anticipated outcomes. They help to guide your actions, both big and small throughout the year. Intentions also allow you to push yourself beyond simply thinking about desirable outcomes.