Jordan L. Kahn, the chief investment officer at HCR Wealth Advisors, provides insight about the prospects of financial recovery based upon the some of the lowest stock market volatility experienced historically in 2017. Was 2017 a fluke, or a sign of the economic times to come? As far as the low volatility of last year, investors are more likely to rely on history to determine what’s next for their portfolios. Where are stocks “growing” in 2018? Will this year see more pullbacks? Or will bond yields increase? It’s just too soon to say, the low volatility will either continue or the bond yields will influence other factors.
HCR Wealth Advisors is a registered investment advisory firm offering a comprehensive range of financial services. Understanding the recent movements in the stock market is one of the best data points for managing your financial portfolio. For example, how will the recent interest rate hikes by the Federal Reserve impact investors in 2018? Typically, it’s only when the economy strengthens that the Federal Reserve seeks to raise the short-term interest rates, an effort to control inflation. Prior to this, we only saw minor fluctuations in interest rates in 2015 and 2016.
Stocks made a big rebound in 2017, defying many predictive indicators. The influencing element was that investors saw the upward progression of the S&P as a positive. At HCR Wealth Advisors, financial trend monitoring is one of the most important aspects of portfolio building. Altogether, the course has been set for another solid year of productive gains from the bull market. If we look to the history of the S&P, we can see that the market is ripe for healthy growth. It’s not a straight line, because the potential involves several factors, such as the pace of bond funds and the trajectory of equity funds. According to HCR Wealth, the stock market will likely continue its upward trend with solid gains.
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