The 2018 stock market was a wild ride. It began with the best-performing January in 29 years, the longest stretch without a 5% pullback, and the first 10% correction in years, which occurred over a three-week period. For the ensuing six months, the market worked its way to another record high in September. Then, for the first time since 1950, the market experienced another lightning-fast correction, with many more stocks declining even further.
When you’re planning a family road trip, you don’t just get in your car and start driving. You consider all the variables first. Formulating a solid plan is key for a successful road trip, and it is also the first step in a successful financial journey.
The summer rally continued through August, once again defying market pundits and conventional wisdom. In the midst of this move higher, however, there has been wide disparity among the various sectors. The market continues to favor growth-oriented sectors given accelerating economic growth and consumer spending, as well as robust spending on technology to fuel efficiency gains, while rising interest rates have made yield-oriented sectors less attractive.