Monthly​ Economic Update: November 2019

Transcript:

Hello, folks! I’m Derek Merkler, the Military Financial Advisor with my monthly economic update video.

Stocks were up in October. Investors liked what they heard about interest rates, trade, and earnings. The S&P 500’s 2-percent gain was topped by the Nasdaq Composite, which rose 3.7 percent. The Dow Jones Industrial Average improved just half a percent. On October 30th, the S&P closed at a record high.[1],[2]

The Federal Reserve lowered the benchmark interest rate by a quarter-point. It is now in a range of 1.5 percent to 1.75 percent. Fed Chair Jerome Powell said that the central bank believes the “current stance of monetary policy” is “likely to remain appropriate.”[3]

On October 11, President Trump announced that the U.S. and China were close to approving “phase one” of a new trade pact. President Trump and Chinese President Xi plan to sign it sometime this month.[4]

Earnings season was about 70 percent done when October ended. Through November 1, 76 percent of S&P 500 companies had beaten earnings estimates. Sixty-one percent had beaten sales estimates.[5]

Job creation also topped forecasts last month. The Department of Labor reported 128,000 net new jobs; economists polled by Bloomberg had projected 85,000. This happened even with the General Motors strike impacting factory hiring. Unemployment was at 3.6 percent.[6]

With U.S. stocks continuing to reach record highs as I record this video, expect to see articles and news stories suggesting that the next financial apocalypse is days or weeks away… that we can’t go higher from here.

And those claims may be right.  If you claim that a crisis or crash is coming 24/7/365, you’ll probably be right at some point.  Think back to August of this year.  Or December of last year.  Supposedly, the world was ending!

In reality, they were minor bumps in the road… barely noticeable if you have a long-term outlook.

What will happen in November?  I have no idea… but it probably won’t matter to your financial plan.

I hope that you enjoyed this video. Please take the time to share it. Until next month…

Credits:

Thanks for watching!

Please visit my website at:

MilitaryFA.PXAdvisor.com

Remember, the topics discussed in this video are for informational purposes only and that past results do not guarantee future performance.  If you would like to discuss your financial situation, please email me at Derek.Merkler@Parsonex.com.

Advisory services offered through Parsonex Advisory Services, Inc., 8310 S.Valley Hwy, Suite 110, Englewood, CO 80112. 303-662-8700.


[1] https://www.bloomberg.com/markets/stocks

[2] https://www.marketwatch.com/story/stocks-on-track-for-mixed-start-ahead-of-fed-decision-2019-10-30

[3] https://www.cnbc.com/2019/10/30/fed-decision-interest-rates-cut.html

[4] https://www.bloomberg.com/news/articles/2019-10-30/trump-xi-trade-meeting-in-doubt-after-chile-cancels-apec-summit

[5] https://insight.factset.com/sp-500-earnings-season-update-november-1-2019

[6] https://time.com/5716189/us-adds-128000-jobs-october-2019/

 

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