Watch the CPK Market Action Report: January 2020

The seasonal year-end rally was the perfect holiday gift for investors. Can a phase one trade deal with the suggestion of more to come continue to push the markets even higher in 2020?

Watch the full 3-minute Market Action Report now: 

January 2020

Stocks were up in December. Investors showed guarded optimism, thanks to continuing trade negotiations between the U.S. and China as well as positive market data as the year came to a close. The Nasdaq Composite rose 3.9 percent, while the S&P 500 picked up 3.15 percent. The Dow Jones Industrial Average also showed a 2.1 percent improvement.

The Federal Reserve chose to end the year with a more “dovish” stance. After three rate cuts spread over the last year, it remains to be seen how long the Fed can hold its current monetary stance.

In global news, representatives from both the U.S. and China agreed on a “phase-one” trade deal, after a year-and-a-half of imposing tariffs on each other’s products. This pact, which is expected to be signed in 2020, is characterized as an initial step toward a larger deal.

The latest data shows the Consumer Price Index for All Urban Consumers (CPI-U) rose 0.3 percent in November on a seasonally adjusted basis, after rising 0.4 percent in October. Over the last 12 months, the all-items index increased 2.1 percent before seasonal adjustment.

The short-term economic outlook really can’t be discussed without noting the passage of the Setting Every Community Up for Retirement Enhancement better known as the (SECURE) Act, which occurred prior to Christmas. This new law alters a key rule pertaining to traditional retirement accounts. It raises the age for Required Minimum Distributions known as (RMDs) from 70½ to 72. Intended to strengthen retirement security across the country, the SECURE Act has some investors worried that the changes may hurt Americans who are actively saving for retirement. At the same time, many economists believe these changes will have a minimal impact over time.

So, for the month of January, I will maintain my balanced exposure to domestic and international equities. However, I still hold a small cash position in all of my models as a hedge. 

On the domestic front, I am focused on the Large Cap Growth, Mid Cap Growth and Small Cap Growth; specifically, the Tech, Industrial and Financial sectors. 

As for International equities, I am 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 December 2019 Market Action Report. Thanks for joining me. It’s time for me to get back to the markets. And that action starts NOW!

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.

Toll-Free: (866) 521-7526