This has been a decade of growth having a lot to do with the last decade ending on such a sour note. The bull market turns 129 months old this December. This has provided way to a good 2019. We have seen a lot of central banks around the globe pumping money into the system because of what had happened in the previous decade. Also, only 4 other countries have had better market performance than the U.S. in the last 10 years. They include Jamaica, Cambodia, Kenya and Georgia. The worst market has been Greece which was down 93% this decade. Commodities have been down which is positive for us when it comes to filling up our tanks. Pork was down 57%, coffee was down 66%, natural gas was down 93% and crude oil was down 68%. One negative item is that student debt has nearly doubled. On average, 55% of Americans have owned stocks this decade which is down from 62% last decade. We would like to see that average start to rise. One random fact is that The Villages, Florida has had the biggest metropolitan population growth this decade.
Theories & Noise
It’s important to point out that a lot of these facts and issues can cause anxiety but may not necessarily be valid or come to fruition. A theme for this year and decade is noise. Two theories following the financial crisis in 2008 economists formed were the Debt Hangover Theory and Secular Segmentation Theory. The Debt Hangover Theory was estimating near a 4% interest rate at the end of this decade. We are currently sitting under 2%. Near the beginning of the decade we saw an unemployment rate over 10% that was believed to come down some (around 5%) but is currently sitting at a 50-year low. This is important because we have low inflation, low interest rates and low unemployment which could ultimately point to more room for growth. It’s important to keep in mind that theories are just that…theories. Don’t make a judgment and lock in that it’s the permanent possibility and truth.
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.
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.
Economic forecasts set forth in this presentation may not develop as predicted.
No strategy can ensure success or protect against a loss.
Stock investing involves risk including potential loss of principal.
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