Following a disappointing 4th quarter in 2018 in which the S&P500 Index fell nearly 20%, the first quarter of 2019 is much improved with the Index finishing up over twelve percent. Domestic earnings are growing, albeit at a slower pace than last year, and unemployment is holding low.
The Federal Reserve has been doing a good job keeping the dollar from getting too strong versus other currencies while US equities are performing better than many other developed nations.
There is concern over the inverted yield curve (short-term interest rates are higher than long-term interest rates) because an inverted yield curve always precedes a recession. However, a recession does not always follow an inverted yield curve – we cannot stress the importance of that distinction enough.
Our Spring Client Event is May 5th, Cinco de Mayo, at Catalina State Park, so please save the date. Also, in May our own Rob Wright will be the guest artist with the Tucson Pops Orchestra Music Under the Stars at Reid Park on Sunday, May 26th. If you have never attended one of those concerts, give it a try! People bring blankets and chairs and a picnic to enjoy while listening to a professional concert. And it’s free! The music starts at 7pm and you can come early to get a good spot. We hope to have a Southwest Investment Advisors cheering section and would love to have you join us.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly