2019

Nothing New

Happy Friday,

When I wrote the December 20th market commentary, the S&P500 had been down 15.77% from its September high at which point I stated that the market was well overdue for a relief rally given how quickly it had dropped.  Two trading days later (December 24th) the rally had begun and today (just 8 weeks later), the market has rallied 12.2%.  While we didn’t have many, some investors did get a little antsy as is generally the case during periods of market contraction. I don’t bring up the recent rally to suggest that markets will continue to climb, but the rapid recovery is yet another example of how quickly things can turn around and the importance of sticking to a disciplined approach once one has been identified.

Looking forward we continue to maintain a defensive stance.  We continue to hold healthy companies with strong fundamentals and will pay close attention to their trading patterns as measured through technical analysis.  In addition, our advisors seem to continue to include private securities into client accounts as a means to reduce volatility from their equity mandates.  Our firm’s allocation to private debt has grown substantially over the last six months and we believe this trend will continue into 2019.

Despite the late stage economic cycle, depending on the weightings of the asset classes mentioned above, our clients should generate mid to high single-digit returns for 2019.  Should we see meaningful selloffs over the upcoming months, we will capitalize on any opportunities to snatch up value names.

Have a good weekend.

 

Daniel Popescu CFP, CIM, FMA, FCSI

President & CEO

 

 

“I have prepared this commentary to give you my thoughts on various investment alternatives and considerations which may be relevant to your portfolio. This commentary reflects my opinions alone and may not reflect the views of Harbourfront Wealth Management. In expressing these opinions, I bring my best judgment and professional experience from the perspective of someone who surveys a broad range of investments. Therefore, this report should be viewed as a reflection of my informed opinions rather than analyses produced by Harbourfront Wealth Management Inc.”

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