Updates on the Markets and Risk Concerns
Consumer sentiment remains high, but has leveled out. According to the latest index of consumer sentiment “the data provide no indication of an imminent downturn nor do the data provide any indication of a resurgent boom in spending.” Many of our clients have asked about risk levels including political risk with the Trump administration. The markets have largely responded mostly to economic fundamentals and the prospects of reduced regulation, tax cuts and possible infrastructure spending. Here is an interesting article that addresses the current scandals in the Trump administration over Russia, and posits that the market may still have reasons to respond positively regardless of the fate of the Trump Administration. Our advice is to always make sure you are invested according to your goals, time frames, and risk tolerance. If you are concerned about missing out on potential gains, but worried about risk, we have several alternatives that might suit you including using money managers who will go to 100% cash or government bonds in any crisis. Please contact our office for more information, and we can review these options with you.