Perspective On The Markets


We are always trying to provide information to our clients that will put the stock market and its gyrations into perspective. I've recently come across two charts that I want to share with you. The first is from First Trust, a company of which I think very highly and find their information very informative.

While the chart was produced to show the performance of one of their electronic traded funds (ETFs) to the S&P 500 and how it reacted to various events over the last 12 years, look at it in terms of the S&P 500 itself. We have all probably forgotten many of these events and how terrible they sounded at the time. Yet, OVER TIME, our investments have increased far exceeding inflation.

The second chart is one that I put together that will hopefully allow you some perspective in how our accounts have performed over the last few months of 2018. While 2018 was a "down" year, history tells us that if we have a long-term horizon for our investments we will be rewarded.

So the next time you hear the doom and gloomers trying to scare you by saying something like, "some analysts are predicting another 'stock market crash any day', protect yourself against the next 50% loss in your investments" by buying whatever product they are selling, take a look at this chart and ask yourself if you REALLY think we are going to be experiencing another 1931.

Because if you think another 1931 is just around the corner, you shouldn't be invested in the stock market right now. At Newton Wealth Management we work with clients who have a long term goal of creating wealth while mitigating risk. If you are not a client of NewtonWealthManagement and want to see if your current portfolio is structured to take advantage of the 2019 market, let us analyze your portfolio (for free) and see if there are changes we would recommend to help you get better results in the market. To learn more about our free portfolio review, click here or to get started, call Kristen Hensley at the office at 704-552-8689.


W. Edward Newton, Jr. CPA, CFP(R)

Newton Wealth Management
13850 Ballantyne Corporate Place, Suite 500
Charlotte, NC 28277-2830