Historically last week is a weaker period in the markets. This usually comes after “Triple Witching” which is when options, futures, and options on futures, all expire so it was not unexpected.
Riots in Hong Kong
Citizens in Hong Kong are demonstrating against ruling China for a more democratic system. The Chinese are pushing back and this is having some negative affects on the market. The ECB (European Central Bank) is meeting this week. Mario Draghi, President of the European Central Bank, is saying he will do whatever it takes to keep the Euro viable as a currency. Internationally these are two issues we are watching closely as they have the potential to impact our clients portfolios.
The US Economy
Domestically, housing starts were down last week which was not a surprise. The Fed kept some positive wording in their statements which the markets took as a positive. We will see a good amount of data come out this week which will give us a great picture of our economy and how we look going into the fourth quarter. Historically since 2009 the economy starts off the year weak and ends strong. It appears from the data we have right now, that we will see this happen again this year.
Are stocks “priced to perfection”?
The term “priced to perfection” has recently become popular in the media and we want you to be aware of it. The Wall Street Journal even has an article about it today. Priced to perfection means that the price is beginning to settle at a level where it was starting to grow. When it is priced to perfection, it would take several factors for that stock to go up or down (more in the video).
Currently we are seeing more up and down movement in the markets than at the beginning of the year. This is causing people to question if stocks are priced to perfection or not. There are still other underlying factors to consider when deciding whether stocks are priced to perfection. We wanted you to be aware that you could hear more about this in the future.
Continue to send us your comments and questions. When you do, it guides us towards giving you the information you need.
fi-Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. fi-Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.
Stock investing involves risk including potential loss of principal.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.