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The Markets This Week

January 1, 2019 | Weekly Commentary

by Connor Darrell CFA, Assistant Vice President – Head of Investments
It was another wild ride for investors despite the holiday-shortened week. Markets were sent tumbling throughout Monday’s abbreviated trading session after Treasury Secretary Steve Mnuchin released a curiously timed statement via Twitter, informing markets that he had spoken with executives from the nation’s six largest banks and had been assured that each were suffering from no liquidity issues. The statement was confounding to market participants as it seemed aimed at addressing a concern that had not been apparent to investors prior to its release.

After the holiday, markets seemed to conclude that this was nothing more than a poorly executed attempt by the White House to stabilize markets, and Wednesday’s trading session was one of the strongest in a decade. By the end of the week, U.S. equities managed to climb out of bear market territory to generate a gain of 2.90% (as measured by the S&P 500). Bonds have continued to play their traditional role as safe haven, generating positive returns as well.

Happy New Year from VNFA
Markets have been volatile in 2018, but as we have communicated previously, we do not believe that there is a need for drastic measures to be taken in portfolios at this time. CLICK HERE to access our recent market note (which summarizes our current thinking on markets).

We encourage investors to enjoy their New Year’s celebrations with friends and family and wish all TWC readers a happy and prosperous 2019!