Watch the CPK Market Action Report: February 2020

A major foreign economy gets hit with a serious health virus while the United States signs trade deals that could bring even more growth to our economy. What impact will the virus have on the markets and global economies?

Watch the full 3-minute Market Action Report now: 

February 2020

A virus affected stocks in January. The coronavirus weighed on equities worldwide. Traders wondered: would quarantines and travel bans hurt corporate earnings? Major indices were mixed. The Dow Industrials lost 1 percent and the S&P 500 lost 0.2 percent. The Nasdaq Composite, however, rose 2 percent.

The U.S. and China signed off on a partial trade deal, which could possibly lead to a larger one. We reduced some tariffs, and in turn, China pledged to buy more American goods and police counterfeiting to a greater degree. By the way, China’s economy grew 6.1% last year. 2019 was the worst year for its economy since 1990., 

The United States-Canada-Mexico Agreement, the USMCA, was passed in Congress and signed by President Trump. If Canada approves it, it will go into effect and replace NAFTA, the North American Free Trade Agreement.

Consumer confidence rose to a level unseen since August. Reports showed consumer spending, retail sales, and existing home sales went up in December.,

Markets are fixated on the coronavirus. Anxiety over the outbreak has led to some profit-taking. In the short run, this may continue. In the long run, this episode may be remembered as a brick in a wall of worry, that stocks may overcome.

So, for the month of February I am still balanced between Domestic and International equities. I do think it is important to inform you that Cash has silently moved up to 4th place behind Fixed Income in my rankings. This is not cause for immediate action. However, it is notable and should be closely watched for further improvements which I will keep you posted on. 

For domestic equities, I added large cap blend to the lineup of large-cap growth, mid-cap growth and small-cap growth. However, I am staying the course with technology, industrial and financial sectors.

As for International Equities, I remain focused on European Emerging Markets, Asia-Pacific Developed Markets and European Developed Markets.

Although this is where my focus is right now, this is not a recommendation. My interests may change throughout the month while I continue to monitor economic and geopolitical conditions. 

Regardless of what happens next, investors like you need to have a simple and yet solid financial plan that reduces RISKS, COSTS & TAXES while securing the necessary income you need to maintain your lifestyle throughout retirement. 

If you don’t have a plan, OR you’re not comfortable with the plan you have, call me today to get pointed in the right direction. I'm Chad Kunc, and that puts a wrap on the February 2020 Market Action Report. 

Thanks for joining me. It’s time for me to get back to the markets. And that action starts NOW!

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