ASK THE ADVISERS

The views and options expressed in “Ask the Advisers” are solely those of Keith Singer.

The Quarter in Review

September ended with the S&P 500 up 1.2% for the quarter and up 19% through the first three quarters which is the best three quarters to start a year since 1997. However when combined with the 14% loss in the fourth quarter of 2018, the S&P 500 is up just over 2% for the last year. The technology laden Nasdaq index rose just .2% for the quarter while the Russell 2000 fell 2.4% and the smallest stocks measured by the Russell Microcap index fell over 5.5%. The S&P 500 hit its all-time high on July 26th in anticipation of Fed rate cuts. However in August when the U.S. and China announced their mutual willingness to enter into an all-out trade war, the markets took a dive but luckily rebounded quickly when it appeared that cooler heads would prevail. The bigger question is, “What’s in store for the fourth quarter?”

If the first couple days of October are any indication,

this upcoming quarter may turn out to be the worst of 2019. The hiring slow-down in August along with a decrease in world-wide manufacturing data could be the sign of a global economic slowdown. As is usually the case, there are many things that the market is concerned about. As always, investors will be analyzing third quarter earnings reports. The Trump impeachment movement has been gaining momentum which could add to market volatility. The market will be watching the Federal Reserve for additional rate cuts and of course the US/ China trade impasse needs to be resolved. Investors are clearly rooting for a deescalation of tensions between the two nations. There is a meeting scheduled for early October which could shed some light on the likelihood of a deal. The reported outcome of that meeting should have a significant impact on the direction of stock prices. Further escalations would likely add to market volatility.

This information is provided for informational purposes only. Past performance does not guarantee future results. Keith Singer is an attorney and Certified Financial Planner and he offers Advisory Services through Singer Wealth Advisors, a Florida Advisory firm.