Q1 2013 Market Summary for Clients
Submitted by First & Main Financial Planners - East Bay Area: Oakland, CA on June 16th, 2016Sublime is the word that comes to mind for describing performance in financial markets for Q1 2013.
With the exception of a short dip in February, stocks mostly went up smoothly and with little resistance. We’ve had years of turmoil and frustration with global economic progress but things looked mostly not horrible last quarter.
Those kinds of quarterly numbers don’t come about very often. Q2 has started with some ugliness and volatility more reflective of the fact we’re still working through the worst economic downturn since The Great Depression.
Employment and housing continue to very gradually move to the positive in the U.S. but there’s concern U.S. companies can’t continue to grow profits in the face of modest economic growth. It’s likely The Fed will continue to provide stimulus on into the foreseeable future.
China’s growth seems to be flagging which is not good news for the global economy. The European debt crisis is really years from being resolved with several of the weaker member countries still on life support and adding to their debt level on a daily basis. Tiny Cyprus was the most recent casualty of bad loans and too much leverage.
Not horrible but not great and much time before us to work through the critical issues. Big return years in stocks are possible with last quarter giving a glimpse into the power and potential but it’s tough to imagine we’ll finish this year up 35% to 40%. My guess is the rest of this year will be marked by heightened volatility with maybe some positive results before we reach 2014.
The unexpected can always derail progress but progress has always won out over the long run.
As always, I truly appreciate the confidence you’ve place in me with your assets and I want you to feel free to call at any time regarding your portfolio or any personal financial matter.
Sincerely,
Erik S. Wolfers, MBA, CFP®