Happy New Year!
With 2018 in the books, it’s time to start looking at what 2019 has in store for us. We ended 2018 in a wave of volatility, and we don’t necessarily predict headline risk to subside for 2019. Ongoing trade wars with China, government shutdowns, and a shift to a Democrat House majority are amongst some of the contributing factors to that risk. If the government shutdown continues through January (already the longest in history), some are predicting that we could see a noticeable slowing of GDP growth in Q1. In fact, a recent survey of economists by the Wall Street Journal predicts growth of 2.2% in the first quarter 2019 — a reduction from the 3.1% growth in the first quarter 2018.
At Collins Investment Group, we try not to hit the panic button, though. When sorting through the headlines, another theme emerges. Despite the recent volatility, several economic indicators like unemployment, wage growth, jobless claims and supply manager’s surveys are pointing to economic stability and a potential for growth. While we’re not necessarily going to see the growth that we’ve seen in the last two years of this bull market, we may see something similar to the moderate economic growth that we had in the first eight years of our economic recovery.
Sometimes, negative headlines can bury the positives, but overall, the news cycle generally finds balance in the longer run. That is why we will continue to stress remaining invested through volatility, adding to your portfolios where suitable and investing for the longer term. Remaining properly allocated for your long-term goals in well established companies with strong fundamentals and a history of growing their dividend over time has historically been a productive strategy throughout several market cycles and we believe that it will continue to be. And of course, remember my most important rules:
Rule #1: Don’t touch the principal and Rule #2: Don’t forget rule #1!
Collins Investment Group will continue to manage your portfolios to suit the objectives and risk tolerances that we’ve established with you. If there has been anything that you believe may require a reassessment of your allocation or investment strategy, please let us know. We will be happy to help adjust your portfolio in a way that meets your current needs while sustaining your long-term strategy and helps you feel confident.
Tax Season 2019
One of the most immediate changes that many people will notice for 2019 is how they file their taxes. This year is the first filing year since the tax overhaul. While we cannot advise directly on all of the changes, we’ll be happy to work with your CPAs or tax preparers upon your direction. To do so, please give us a call to confirm a few pieces of information with our team.
In regard to your tax document mailing and availability, we’ve also provided the time line of tax document delivery from Wells Fargo Advisors Financial Network, below:
Wells Fargo Advisors Financial Network did not assist in the preparation of this report, and its accuracy and completeness are not guaranteed. The opinions expressed in this report are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. All investing involves risks including the possible loss of principal invested. Past performance does not guarantee future results. Asset allocation and diversification are investment methods used to help manage risk. They do not guarantee investment returns or eliminate risk of loss including in a declining market. Equity securities are subject to market risk which means their value may fluctuate in response to general economic and market conditions, the prospects of individual companies, and industry sectors. Investments in equity securities are generally more volatile than other types of securities. There is no guarantee that dividend-paying stocks will return more than the overall stock market. Dividends are not guaranteed and are subject to change or elimination. Wells Fargo Advisors is not a tax or legal advisor.
Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. Collins Investment Group, LLC is a separate entity from WFAFN.