Market Commentary

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

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.
1st Quarter 2017 Investment Watch
The optimism that began in the fourth quarter of last year has carried over into 2017. Surges in business and consumer confidence have been driven by the belief that a healthy consumer along with regulatory and tax reform could push U.S. economic growth above the current 2.0% path.
4th Quarter 2016 Investment Watch
2016 was a year with a lot of volatility, as concerns about geo-political risks, global economic growth, central bank activity and a contentious U.S. election weighed on investors’ minds.