Last week and today the S&P 500 is hitting new record highs, fully recovering from last year’s market pullback. This market rebound took four months which, coincidentally, is exactly the historical average for bounce-backs after market corrections.
Why has the market rebounded so strongly this year? As last week’s positive GDP surprise showed, economic growth is still healthy! Additionally the Fed has reversed course on their path of interest rate hikes, and will likely not raise rates in 2019. Further China, USA trade talks are progressing.
Potential geo-political risks include Brexit. The US economy is looking strong for now. At some point in the future volatility will rear it’s ugly head. Until then, stay invested, stay diversified, stay disciplined.