Dynasty Monthly Market Commentary: December 2019

David Martin Darst, CFA, Senior Investment Advisor, Dynasty Financial Partners

Below is the market commentary from our partners, Dynasty Financial Partners.

Portfolio Strategy for the Year Ahead

As we think through the landscape for the coming year, we believe 2020 will feature modest U.S. GDP and S&P 500 profit growth; an accommodative monetary policy by the Federal Reserve and other major central banks; a gradual pickup in economic activity in China and Europe; and (possibly induced by geopolitical, political, and/or policy shifts) higher levels of financial market volatility than the relatively quiescent levels of the past 12 months.  We do not yet see a recession on the horizon given slowing, but still solid, economic growth and a strong American labor market and consumer.  The chart below illustrates how resilient the bull market has been since the financial crisis.  However, expectations for portfolio returns should be muted in 2020 given the strong performance that 2019 has delivered and where that has left valuations in the equity and fixed income markets.

To continue reading the commentary, please click here