January markets gave back what December took away and more. Large U.S. company stock indices were up over 8% for the month. All market sectors, including bonds, participated in the bounce back last month.
Some market analysts predict another step back in stocks this quarter but a positive outcome for 2019. A market drop soon would offer a buying opportunity. The coming recession (in 12-18 months) is projected to be shallow, perhaps comparable to 1990. Current stock prices include this expectation. Sectors expected to exceed going forward include International stocks and U.S. value-oriented stocks. Both of these sectors have underperformed for many years and returned strongly in January.
Preparing for income taxes: TD Ameritrade has mailed most annual 1099-R reports on 2018 withdrawals from IRA accounts. For non-IRA accounts, TD Ameritrade dividend and cap gain 1099 reports include cost basis data and will be mailed to you by mid-February. If you need a copy, we can retrieve it online and email/fax it to you or your tax preparer. We are happy to assist you with all of this.
The sun again has power. Signs of change invade “still winter”. Sugar maples will soon be tapped for the sweet sap cycling from the buds. Syrup, a late winter sport. Even a cheery bird sang on a recent mild morning, way ahead of himself but the push on the season resonates. By now nature is urging for spring.
