The U.S. equities market year-to-date for 2018 can be summed up in one word: volatile.
Market forces seem to be fighting against each other in a classic good versus evil scenario. Corporate earnings reports for quarter ending June 2018 are doing very well and the S&P 500 has shown 79% of companies that have reported, which is 406 of 500 thus far, have beaten analyst expectations according to Thompson Reuters as of August 3, 2018. The opposite forces trying to drag down the U.S. market are the “trade war” talks with China and the underperforming markets of international countries. Last week, the U.S. market took on defensive posturing as investors moved billions from the stock market into bonds. Turkey’s currency dilemma initiated this transfer and emerging markets inched closer to bear market territory. Europe has had 23 straight weeks of outflow from its equities markets. Higher U.S. dividend paying sectors – such as consumer staples, utilities, real estate, healthcare & telecoms – have been the best producing sectors over the past three months, which points again to growing caution among investors.
Here are things to consider in times of volatile markets:
– Thomas DiCesare, Investment Advisor
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