Isaacson Update & Special Reports
Market Update from Joel Isaacson & Company
It certainly has been a tumultuous few months for both financial markets and investors. We would like to take a moment to share with you our thoughts on the current environment.
As everyone has witnessed, markets have sold off meaningfully this month to date. One of the main reasons for the selloff has been the uncertainty and subsequent disappointment surrounding the Federal Reserve decision and guidance on policy going forward. Investors were expecting a more accommodative stance coming from the FED, which would have indicated an understanding that financial conditions are tighter than originally thought. Many economists felt overseas weakness and contained U.S. inflation were not sufficiently factored into the policy decision. The most recent selloff could also be pricing in a higher probability of a future U.S. economic recession as well as slower growth overseas. Adding to the selling pressure is a wave of tax loss harvesting by investors as the year comes to a close and a possible U.S. government shutdown this week.
We expect headline risk to continue in the months ahead, with markets remaining volatile and investor risk appetites to stay low. Volatility should return to more typical levels once the rate hike cycle pauses and the level of geopolitical risk begins to subside. A key component of this geopolitical risk is the status of the U.S.-China trade relationship. A reasonable solution offering a degree of certainty for companies looking into the future should help materially. The global economic landscape is much less clear, facing ongoing concerns that include Brexit, Italy’s fiscal health and growth expectations for Europe as a whole. Emerging markets have suffered this year as well. However, most expect this sector to rebound once rate hikes pause and both lower oil prices and a weaker dollar work into the picture.
We believe quarterly corporate earnings will remain the key driver for the equity markets as we move through 2019. In light of solid employment data and rising real incomes, most economists expect the consumer to remain the primary engine for economic growth moving forward.
It is important to keep in mind how far the markets have come since the financial crisis in 2008. As your advisors, we have strived to maintain balanced “all-weather” portfolios, including taking profits and re-balancing many times across this last decade of extraordinarily strong market performance. As we have discussed many times, successful investing requires us all to take emotion out of the equation to the extent possible. Instead, we must methodically focus on our long term goals, risk tolerance and current income needs. Additionally, we must work together to review any changes to your personal circumstances that would warrant a fresh look at these important components of your long term plan.
As always, we encourage you to discuss any specific concerns you may have with your advisory team. We would like to wish everyone a happy and healthy holiday season and New Year!
Thank you to the best staff and clients who made celebrating 25 years possible. A special thank you to all who braved a November snowstorm on Thursday, 11/15/18, to join us at the United Nations. Click here to view Governor’s letter congratulating Joel Isaacson & Co. on celebrating 25 years.
On Thursday, November 3rd, we had an informative presentation at our client event on the state of the electoral season, culminating on Election Day, November 8th provided by Greg Valliere.
Greg is the Chief Political Strategist for Horizon Investments specializing in coverage of the Federal Reserve, tax and spending issues, and - of course - politics. He has nearly 40 years of experience following Washington issues for institutional and retail investors. He also is widely quoted in the nation's media. Greg is a regular guest on CNBC, Bloomberg TV and radio, Fox Business, CNN, and CBS radio. He is also regularly quoted in the nation's financial press, including Barron's and the Wall Street Journal.
We want to thank our clients for joining us as we endeavor to bring quality and useful information to you. Additionally, we are always pleased to be able to have you join us and we want to thank you for continuing to allow us to earn your business every day.
AHRC honors Joel Isaacson with the Business & Philanthropic Leadership Award
On Tuesday, February 3, 2015 the AHRC will recognize Joel Isaacson, CEO and Founder of Joel Isaacson & Co., LLC, with its Business & Philanthropic Leadership Award (click link to learn more). The honor will take place at the 35th Annual Thurman Munson Awards Dinner. We are extremely proud to have Joel be recognized in this manner for his contributions to a wonderful cause and for his work on behalf of this underserved population. The values that the ARHC embraces, Passion, Respect, Integrity, Diversity and Excellence are characteristics that Joel brings to the firm as well and for its clients. Click here for more information.