This week, USA TODAY’s Adam Shell announced his retirement as money reporter following Wall Street. On Monday, he shared some parting words for his readers that are good reminders about taking a long-term approach to investing.
2019 is off to a turbulent start. The first couple trading days of the year were the worst in 18 years, only to be eclipsed by a huge rally today that left equity investors a bit richer for the week, albeit whipsawed in the process.
2018 is in the history books and, if anything, we were surprised at how little changed from the previous year. Unemployment was still at record low levels. Wages failed to increase significantly. Housing prices continued to skyrocket. And while some pundits were talking about the economy starting to slow down, economist John Mitchell assured us that the economy will continue to grow in 2019.
After six years of exceptionally low “turbulence,” volatility returned with a vengeance last year. We expect this bumpy flight path to persist as investors digest slowing economic expansion, materially lower earnings growth and broadening trade and political tensions.
As we look back on 2018, we can summarize the year as one where volatility emerged at the same time equity markets and the economy diverged enormously. In fact, 2018 is estimated to produce the strongest economic growth since the Global Financial Crisis at 3.0 percent.