Monthly Market Update:
Recap of January 2020
The year started as a rally that extended from last year’s stock market growth. Then, we hit a bit of a halt with the coronavirus along with a few other bumps on the way. One slight hiccup in the market came when a top Iranian military officer was killed. This sent the market down briefly, but it then rebounded as though nothing happened after all countries involved settled down a bit and worked toward an agreement.
At the same time the stock markets declined with middle east concerns, oil prices surged, but they quickly retracted their gains. The corona virus led a sharp decline at the end of January due to global concerns of the virus and the impact it could have on the global economy.
As for returns for the month, as I mentioned, it started out looking great, but slipped a bit at the end of the month with growing concerns with the coronavirus. The Nasdaq Composite Index did finish positive, up 2.03%, but the S &P 500 was down .04%, the Dow was down .89%, International markets finished negative with the MSCI Emerging Markets Index taking a big loss finding itself down 4.66%. Through the month of January, it was good to see that bonds remained stable.
With a bit of a volatile month, we will be ready to see what 2020 brings for the remainder of the year. Though a few bumps in the road are never fun, remember to keep a long-term view. Your risk tolerance and financial plan should be steering your ship with the goal of not allowing the news to control your emotions. I know that it is easier said than done, but we are here for you and are making sure your portfolio aligns with your goals.