Was 2018 just a bump in the road… or is 2019 the end of the road?
Also Interesting
Call it superstitious, but we in Applied Equity Advisors are always uncomfortable producing our market outlook commentary for the following year until the current year is complete. Much can happen in December that could impact our projections about the coming year. Certainly December 2018 is a case in point! So here is our analysis as we sit at the end of December 2018, albeit emotionally exhausted after quite a month. (And please also listen to our 2019 Market Commentary webcast, originally taped Thursday, January 3rd, 2019) In summary, we believe the short-term outlook for the market immediately past the treacherous December 2018 is a decent recovery. Sentiment and breadth is so stretched that if the market is consistent with history, we should see rallies from these levels.1 But that does not necessarily mean we have resolved many of the issues that caused this recent correction. That will take time, likely with more weakness to come. Nevertheless, as we contemplate returns for the 2019 full year, we think it would be emotionally easy but intellectually foolish to be LESS optimistic. 2018 washed out many of the excesses, setting up 2019 to be a better year
