Monthly Market Video Update

stock market update feb 2019

Monthly Market Video Update

February was a quiet month as the stock market continued its upward trend and re-entered the trading range that was established in early 2018. Will the upward trend continue to new highs, or will we be stuck in this “landing” for another year?
 

Check out our latest #VideoMarketUpdate for a message from Ron Rough, FSA’s Director of Portfolio Management. In this two-minute video, he provides some insight into what the market landscape has looked like and how FSA plans to approach the next few weeks.

 

February Market Update transcription

 

Hello, this is Ron Rough with a Video Market Update for March.

The update today will sound pretty similar to last month, because stocks continued to rally in February as they did in January.

But let’s take a look at this chart. So we can see that stocks had a strong rally into January. And then that continued on into February.

Within our portfolios, we started investing once we broke through these resistance areas in here in January. As stocks continued to rally in February, we just continued to move the portfolio back into to a more invested position.

What’s interesting though, is if you look back over this entire year. You can see that we remain in this trading range that we’ve been in for over a year. (Marked by this horizontal line here.) Which was the high from January of 2018 and then this low period from February and March of 2018.

Stuck in a Landing

And this, these landings that we call it internally, are really just transition periods between either a rising market or a falling market. As investors wrestle with uncertainty in the market or wrestle with various types of news that’s coming in.

The big issue still holding over the market today is the trade war with China. Is that going to be resolved? Which most market participants seem to think it will be, but it’s not a guarantee of course.

So here we are sitting at some other resistance areas here, right above where the market is. Once we break above these areas, you’ll see us get the portfolios fully invested.

As you know, our discipline is not to try to predict that, but to let the market tell us. So that’s what we’ll be waiting on.

So that should do it for now. Until our next update, thank you for watching!

 

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