Market Update 12/18/18 & Holiday HoursDecember 18th, 2018 by Anchor Bay Capital's Investment Team
Market Update 12/18/2018
A number of economic pressures have caused a continued increase in market volatility. There has been a slowdown in global growth which has some investors worried. China, the world’s second largest economy, is slowing and trade relations with the U.S. are still strained. Additional pressure is being applied by the Federal Reserve’s intentions to raise interest rates. There was some chatter that the pending December rate hike would be delayed, however, recent market sentiment shows that investors believe rates will be raised as planned. The Fed meets tomorrow, Wednesday the 18th, to make a decision.
All that being said, the United States economy is still doing very well. Unemployment is low and GDP is growing. We at Anchor Bay, see this volatility as an opportunity. We will be looking to sell out of some securities that may still have some downward pressure coming – securities that have outperformed over the past year. This will leave us with additional buying power that can be used to purchase cheap securities that have already been hit by the recent market correction. For those who use their accounts for income, remember: market fluctuations do not affect cash flow. We closely monitor our equity selection to make sure the investments chosen maintain constant or growing dividends. Changes in the price of a stock are only captured if sold.
Our office will be closed on Monday December 24th and Tuesday December 25th. We will have limited hours on Wednesday December 26th, we will be available after 9am until about 2pm. For New Years, we will be closed on Tuesday January 1st.
Should you have any pressing concerns, we will always be available via email; For general questions and concerns please email [email protected]. If you have a specific portfolio or market question, contact [email protected] or [email protected].
Warmest wishes for a happy Holiday season and a wonderful New Year!