Tis the Christmas Season to take Stock

Tis the Season

As I write, the holidays are upon us as we count down to Christmas. At this time people are shopping, having their houses painted and redecorated in preparation for family and friends, and attending lots of Christmas parties that lead up to Christmas Day. People are focused on the real and material things around them. But what about your investment portfolio?

This year has been quite momentous for the markets. The market had a 1000 point drop, oil and commodities have reached serious lows, China’s melt down into a recession, and with wild market volatility. You should be asking yourself how the expected rate rise will affect the markets. We have heard the language of the Fed and it seems certain we will have a quarter point rate rise when the Fed meets again for their December meeting.  Given the fact the Fed has indicated they will be moderate with their rate rising unlike rate rising of the past, there may very well be nothing that needs to be changed in your portfolio, however it’s still best to discuss what your plans are for the New Year. Now is the time when you should be thinking about reassessing or even realigning your portfolio.

Are we in for a Santa Claus Rally? The Santa Claus Rally as defined by Investopedia as ”The surge in stock prices that often occurs in the weeks between Christmas and New Years Day”.  Analysts have assumed that this is due to Christmas bonuses being invested in the markets, optimistic Wall Street investors and that the pessimistic have all gone on vacation. Never the less, historically the markets do usually rally in December. Whether these reasons given are correct or not, now is a good time to review what your portfolio has done over the year. Have I met any of my short or long terms objectives? You should also be talking to your advisor getting ready for the New Year.  You may not need to discuss your thoughts with another before you readjust your portfolio. Maybe you have the knowledge, time and conviction to enter the market on your own.  I believe that for most individual clients, it makes sense to have a trusted advisor to bounce thoughts and ideas off of whilst formulating a general plan and fine tuning your current portfolio to meet your measured outlook. I’ve had clients that just want to hear another opinion from a trusted source to reaffirm that their original investments are still suitable, as they are in it for the long haul. So whether Santa comes to the markets this year or not, as we are due for our first rate hike since 2006, look at your portfolio and arrange to speak with your advisor to evaluate what you want and expect in the New Year, not for the trading event, but for your overall long term goals.

Wishing you Happy Holidays and a prosperous New Year!

 

The information contained in this article is for information purposes only, and represent the views of the author. It is not intended as specific investment or financial advice, or a recommendation or solicitation to buy or sell any security. Any investments or strategies listed in this article may not be suitable for all investors. Past performance is not indicative of future performance, and as with any investment, prices may fluctuate. It is recommended that advice is sought from a qualified investment professional prior to implementing any financial plan. LOM has made every effort to ensure that the contents herein have been compiled from sources believed reliable, however LOM does not warrant the accuracy, adequacy, timeliness, or completeness of this information expressly disclaims liability for errors or omissions in this information.