As we enter a rather rocky New Year, the recent market movements may invoke feelings of panic in many. As 2016 begins we continue to deal with much “market noise”, as we have in the past several years.
- Much of the conversation centers around China as it transforms from a manufacturing economy to much more of a service economy. Concerns focus on China’s slowdown and the impact on the remainder of the world.
- There have been widespread opinions on the impact of lower oil prices on the general economy. In fact, lower prices hurt some, but benefit others. Large developed countries, such as the United States, should benefit from lower energy prices overall.
- As we have mentioned in our meetings, the Federal Reserve made its first interest rate adjustment (upward) at the end of last year and laid the groundwork for more adjustments this year. We do believe that they will remain cautious with these moves in the current year.
In addition, we have heard several opinions on stock market valuations and the impact on market direction. As we plan for 2016, this data, along with other considerations, impact the allocation changes that we are making for our clients’ accounts. We are taking into consideration your risk tolerance, along with goals that we have discussed together. We remain focused on the long term, but vigilant about near term economic and market influences.
To our clients, we thank you for allowing Legacy Financial Strategies to continue helping you with your financial needs. We encourage you to call with any questions that you may have, but will be updating you with developments in our regular meetings.
For those who are new to Legacy, should you have any questions, concerns or a desire for someone to take a look at your investment strategy or financial plan, we invite you to reach out to us. Our goal is to take away your financial anxiety so you can better spend time enjoying life.