Market Commentary

At Godsey & Gibb, we respect the uniqueness of each client’s investment needs and expectations.

1st Quarter 2019 Investment Watch
Financial markets got off to a strong start despite the partial government shutdown and concerns about slowing global economic growth. Despite investor concerns about economic growth, equity returns were led by more economically sensitive sectors such as information technology, industrials and consumer discretionary.
4th Quarter 2018 Investment Watch
2018 was marked by a divergence in the performance of the U.S. economy and that of the equity markets. As expected, U.S. economic growth accelerated in 2018 supported by the healthy consumer and increased business spending. While the pace of growth in the final quarter of the year likely fell to around 2.5%, the economy grew at a 3.0% pace for the full year. This is the fastest growth in more than 10 years.
3rd Quarter 2018 Investment Watch
The third quarter could be considered a case study in the power of economic fundamentals over the noise. There was no shortage of negative headlines about trade, North Korea, Russia, and in a country that seems evenly split politically, tensions and rhetoric from all sides seemed to reach new levels. Often lost in those headlines were the stories about stronger economic growth and increasing corporate profitability.
2nd Quarter 2018 Investment Watch
After a choppy start to the year, financial markets exhibited a bit more stability in the second quarter. While we experienced day-to-day volatility, it was less than in the first quarter. Corporate earnings reports, released during the quarter, showed a significant increase in corporate profits. This helped to offset some of the negative headlines.
1st Quarter 2018 Investment Watch
The first quarter was marked by a rise in equity and bond market volatility and the first equity market correction since 2016 (a correction is defined as a 10% decline from the peak). The market faced its first inflation scare in many years and we ended the quarter with investors worried about the potential for a trade war with China. These uncertainties weighed on the equity market throughout the quarter.
4th Quarter 2017 Investment Watch
While we expected to see improving economic growth and positive equity returns in 2017, it is fair to say that the pace of economic growth and market returns exceeded our expectations. Although tax reform did not become law until the end of the year, the anticipation of potential business-friendly tax reductions led to increased confidence from businesses of all sizes. Regulatory relief occurred throughout the year and it positively impacted business investment and corporate profitability. That along with an improvement in consumer confidence helped to drive the better-than-expected economic growth for the year.
3rd Quarter 2017 Investment Watch
The outlook for growth in the second half of the year remains solid, although third quarter GDP will likely be negatively impacted by the hurricanes in Texas, Florida and Puerto Rico. Corporate earnings rose 6.3% in the second quarter, helping to drive positive gains for the equity markets. The S&P 500 rose 4.5% for the third quarter, and is up 14.2% YTD. Geopolitical risks remain elevated across the world, but the financial markets are focused on the underlying performance of the economy and individual companies.
2nd Quarter 2017 Investment Watch
The U.S. economy appears to have gained some momentum in the second quarter on rising consumer spending and expanded manufacturing activity. Geopolitical risks are on the rise with an escalation of tension with North Korea, increased terrorism across Europe and the highly contentious and volatile political divide here in the U.S. Despite these concerns, equity market volatility remains low as the market seems to shrug off negative news and instead focus on the fundamentals of the economy and improving corporate earnings.