Back in January, as we reflected on 2017 in the markets, we were looking back on an incredible year of strong returns and low volatility. Despite an endless stream of news that you might ordinarily think would cause markets to tumble, we never even saw the slightest dip. To say the first quarter of 2018 has seen a stark reversal of 2017 would be a vast understatement.
Last week my son, Logan, turned five years old. Everyone tells you these years go by incredibly fast but there’s nothing you can do to slow down time. Instead, I’ve been trying my best to enjoy every minute of these years. What has amazed me more than anything is how much I’ve learned from him. I write down notes from time to time when he does something that opens my eyes and I thought I’d share a few of those lessons here. Many of these can be applied to different areas of your life, including your finances.
Over the past year we've been so inundated with talk of "fake news" that we have forgotten how bad simply "misleading news" can be. When the market drops and news channels focus on the number of points lost, you lose focus on what you can actually control...
You have heard a lot from us over the past year throughout the tax reform process that ended in late December when the 2017 Tax Cuts and Jobs Act was passed. Keep in mind there are many unanswered questions on this legislation and we are still awaiting guidance from the IRS on several points. We expect to see more information from Congress and the IRS in the coming months. We are focusing on a number of areas as we explore how it will impact our clients. Here are some planning aspects that we think will be important for our clients in 2018:
There are two competing emotions I see many investors wrestling with right now: Fear - After nine years of positive returns in the stock market, we are due for a downturn and I don't want to lose my gains. Fear Of Missing Out (FOMO) - After nine years of positive returns in the stock markets, I need to put all my money in stocks so I don't miss out on these incredible returns.
Every January we sit down to review where we are as a firm, what happened over the past year and to set goals for the upcoming year. We wanted to put this in writing to share with everyone who makes our firm a success. We couldn't do what we do without each and every person reading this and we appreciate your support. Please let us know if there is anything you'd like to see from us in the new year or some way that we can better serve you.