Watch the CPK Market Action Report: October 2019

Markets struggled to add gains for the month as Nancy Pelosi announced a formal impeachment inquiry of President Trump.

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October 2019

Markets struggled to add gains for the month as Nancy Pelosi announced a formal impeachment inquiry of President Trump.

The month of September saw some jitters, but investors saw more upside than downside with the S&P 500 gaining 1.7 percent while the Dow Jones Industrial Average rose nearly 2 percent. The Nasdaq Composite finished up less than a 0.5 percent.

U.S.-China trade talks are scheduled to resume on October 10. There is optimism, but also uncertainty as there has been little progress made toward a deal and there were rumors (which were later denied by the White House) that the U.S. is considering a limit on investments in Chinese companies.

On September 15, the price of West Texas Intermediate crude oil jumped nearly 15 percent. Attacks on major Saudi Arabian facilities took crude near $63 a barrel. Even so, oil had a down month, ending September below $55.,

The Federal Reserve adjusted short-term interest rates. Its quarter-point cut left the benchmark interest rate in a range of 1.75 percent to 2 percent. The vote was close, and Fed officials seemed divided about further cuts. Seven thought we would see another cut this year. Ten didn’t.

On the political front, Speaker Nancy Pelosi announced that the House would initiate a formal impeachment inquiry against President Trump, charging him with betraying his oath of office and the nation’s security by seeking to enlist a foreign power to tarnish a rival for his own political gain. 6

The latest economic indicators were mixed, but better than expected. Companies hired 130,000 net new workers in August, down from 159,000 in July. On the other hand, retail sales and personal incomes were up 0.4 percent. The Conference Board’s Consumer Confidence Index fell and the Institute for Supply Management’s manufacturing index showed factory activity slowing.7

So, for the month of October, I am keeping my focus on just the domestic equities. Although I have not increased my cash position from September, I am keeping a close eye on my indicators as the month has not started out well for the markets as a whole.  

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

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.

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