Decline possible – recovery inevitable
Although we don’t see any specific headwinds and in fact the expected strong fourth quarter earnings of companies along with the decrease in US corporate taxes suggest the US market has more upside – we can never get too complacent with equities. Complacence may lead to taking more risk which is exactly what not to do in these markets.
The fund managers I recommend are still able to find value in certain equities. More so these are found outside of North America and Emerging markets.
I include a link to Andrew Pease of Russell Investments “2018 Global Market Outlook: Running with the Bulls”. To summarize, he is not bullish or bearish and feels equity markets may push higher in the first half of the year and face headwinds in the latter part of the year.
Article: 2018 Global Market Outlook:Running with the Bulls
For those withdrawing from their portfolio’s
We have reviewed portfolio’s and are ensuring sufficient allocation to fixed income so in the event of a dramatic market decline we would recommend switching withdrawals to fixed income to ride out the decline and recovery.
For those investing for their retirement
A market decline would be welcome as shares would then be purchased at lower prices. I would review portfolio’s and contact you to suggest making your investments earlier than planned to take advantage of the sale.