Market Update Q3 2019

The third quarter of 2019 has brought us ever closer to completion of our West Palm Beach office. The final stage includes finding office décor such as photos and paintings that conform to our creative vision. Our door is always open to you.  We are pleased to announce a new member to our team, Michael Kolar. He comes to us from Merrill Lynch with experience in both accounting and financial planning. We believe he will be a tremendous asset in our pursuit of serving you.

In the realm of our third quarter, markets remain choppy. Most of the growth this year in US markets occurred in the first quarter, following sharp declines at the end of 2018. Consumer confidence remains strong as their spending continues to support US economic growth. The foundation of this confidence is US job growth which has continued to remain strong throughout this year. The Federal Reserve continues to be dovish on interest rates with two consecutive rate cuts the past two quarters. This creates wiggle room to refinance debt at lower rates, putting more money in corporate coffers and consumer pockets.

We continue to experience uncertainty over US/china trade negotiations. This unknown has been and continues to weigh on the markets. It could be one of the biggest challenges to investor confidence and a strong economy. Another factor that leads us to be cautiously optimistic is the looming inverted yield curve which historically preceded recessionary pressures to the economy. With the recent reduction in interest rates, the FED has been proactive in easing this pressure. The goal is to reduce short term rates with hopes they will fall below the long term, thus normalizing the yield curve.

As always, we continue to remain diversified in our approach. We employ asset allocation and diversification to capitalize on market efficiencies. We urge investors to be prepared to weather all market cycles. If necessary, we are ready to re-assess your risk tolerance to confirm you are positioned correctly. We are thankful for the opportunity to partner with you.

Gratefully yours,

Renew Family Wealth Team