Watch the CPK Market Action Report: November 2019

A Fed rate adjustment and positive news on the trade front have markets moving higher. Could this be the start a seasonal bull run through year end?

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November 2019

A Fed rate adjustment and positive news on the trade front have markets moving higher. Could this be the start a seasonal bull run through year end?

Stocks were up in October as investors liked what they heard about interest rates, trade, and earnings.

The S&P 500’s 2% gain allowed the index to close at a record high on October 30th.

However, that was topped by the Nasdaq Composite, which rose 3.7%.

The Dow Jones Industrial Average improved just half a percent.

The Federal Reserve lowered the benchmark interest rate by a quarter point. It is now in a range of 1.5 percent to 1.75 percent. Fed Chair Jerome Powell said that the central bank believes the “current stance of monetary policy” is “likely to remain appropriate.”

On October 11, President Trump announced that the U.S. and China were close to approving “phase one” of a new trade pact. President Trump and Chinese President Xi plan to sign it sometime this month.

Earnings season was about 70% done when October ended. Through November 1st, 76 percent of S&P 500 companies had beaten earnings estimates. Sixty-one percent had beaten sales estimates.

Job creation topped forecasts last month. The Department of Labor reported 128,000 net new jobs; economists polled by Bloomberg had projected just 85,000. This happened even with the General Motors strike impacting factory hiring. Unemployment was at 3.6%V.

So, for the month of November, I have widened my focus by adding international equities back in with domestic equities. However, I still maintain a small cash position in my models as I am just cautiously optimistic right now.

Within Domestic Equities, I will continue to focus on Large Cap Growth, Mid Cap Growth and Small Cap Growth; specifically, the Technology, Industrial and Utility sectors.

As for International Equities, they just passed the litmus test the other day for me. So, for right now, I am only focused on European Emerging Markets and Asia-Pacific Emerging Markets.

As a reminder, nothing I shared with you today is a recommendation. My interests may change throughout the month as I continue to monitor economic and geopolitical conditions, the Fed’s moves and trade talks.

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 November 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

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