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Mountain Peak Financial, Inc

At Mountain Peak Financial, Inc., we are dedicated to informing our clients and working closely with them to help develop the best financial strategies for their long-term goals. Our goal is to be the trusted lifetime advisor that helps our clients achieve the confidence they deserve for their financial futures.

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Mountain Peak Financial, Inc.  |  1425 W. Foothill Blvd., Ste 115, Upland, CA 91786 MAP  |  Tel: 909.982.2277

Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Mountain Peak Financial, Inc. are not affiliated companies.

Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. None of the information contained on this website shall constitute an offer to sell or solicit any offer to buy a security or any insurance product. Charles Ragonese CA LIC #0B02155, Firm LIC #0I088569

Any references to protection benefits, safety  or steady and reliable income streams on this website refer only to fixed insurance products. They do not refer, in any way, to securities or investment advisory products. Annuity guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by insurance company. Annuities are not FDIC insured.

The information and opinions contained in any of the material requested from this website are provided by third parties and have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. They are given for informational purposes only and are not a solicitation to buy or sell any of the products mentioned. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation.

Neither the firm nor its agents or representatives may give tax or legal advice.  Individuals should consult with a qualified professional for guidance before making any purchasing decisions. Mountain Peak Financial is not affiliated with the US government or any governmental agency. 615813

© 2018 by Mountain Peak Financial, Inc.

2018 4th Quarter Review

January 23, 2019

Watch the video below to hear Charles' review of the 4th quarter of 2018. 

 

 

Transcript:

 

For this quarter’s review, I want to address the main concern that I’ve been hearing from my clients over the last few months – the age-old fear of losing money as the stock markets seemingly go wild.

 

In the beginning of the 4th quarter, US stocks were off to a rough start as the markets were hit by rising interest rates, the uncertainty of the mid-term elections, concerns over tariffs and trade wars, and other issues regarding corporate earnings. If the markets are panicking, should you? Not necessarily. Did you know that since 1920, on average, the S&P 500 has experienced a 5% pullback 3 times a year, a 10% correction once a year, and a 20% bear market decline every three years? Yet, over the long run, markets have still generated positive returns in the long run according to Fidelity Investments. If your financial plan is tailored to your specific long-term goals (which it would be if you’re working with me), you can avoid some of the panic that leads to portfolio-derailing investment decisions.

 

Here are three things to keep in mind:

#1: The volatility we’ve experienced this year is actually fairly normal, following an unusually calm 2017. Since 1957, the average volatility for the S&P 500 (aka the long-term average standard deviation) has been 15.6%. 2017’s standard deviation was only 6.7% and 2018’s was 15.9%. It feels like a huge difference in comparison to 2017, but as you can see, it’s not abnormal.

#2: Stay invested. A study by Fidelity Investments shows that missing even 5 of the best days can drop the overall return of an investment by 35%! That bumps up to 50% for missing 10 of the best days. Since none of us have a crystal ball to accurately predict which days will be the best, it’s a better strategy to stay in the market knowing that volatility is normal.

#3: The risk of stock market losses lessens over time.  A study by Capital Group showed that a one-year investment saw 27% negative periods, whereas a 10-year investment only saw 6% negative periods. The longer the investment, the fewer negative periods.

 

All this to say again and again – stay invested.

 

Looking ahead to 2019, global growth is expected to slow as the economic cycle enters its late stages. The bull market is old but not quite dead yet! Though volatility is usually expected in the later stages of a market cycle, we can review that your risk tolerance is properly set to remain invested.

(source: “Global Annual Focus: 2018 Year in Review and Market Outlook” – GFPC)

 

Thanks for listening! As always, don’t hesitate to reach out if you have any questions.

 

 

Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Mountain Peak Financial, Inc. are not affiliated companies. Charles Ragonese CA LIC #0B02155 Firm LIC #0I88569 Investing involves risk, including the potential loss of principal. The information and opinions contained herein are provided by third parties and have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by AE Wealth Management. This information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. 710370

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