Marco's Market Insights

From American Heritage Financial Group's January 2018 Newsletter

Ultimately, our optimism remains rooted in the positive fundamental outlook.  Bear markets rarely occur outside of economic downturns, and current recession risk appears low both at home and abroad.  Given all this, my advice for investors is to stay invested but also to lower expectations. 

If you or any family members have jobs as salaried employees, you might be surprised to learn that you're now going to be treated like hourly workers on an assembly line.
 

In reality, a Chinese market correction is exactly what's needed and what every savvy investor knows has to happen, even if they don't "want" to see it. Meanwhile the TPA didn't need to happen, but paid for Republican politicians made certain that it did.

America's middle class is paying the price for anti-market  laws and over regulation that line the pockets of "great predators" in the financial markets.

With a little knowledge, a lot of research, and an understanding of what produces higher returns, anyone can create the financial success they want, especially if they screen out the "junk."

Most encouraging are the indications that the strength in hiring is finally translating into modest wage increases, with average hourly earnings posting a 0.5% gain in January.  

Meanwhile ... President Obama's new deportation amnesty could grant Social Security numbers to as many as 4 million or more illegal immigrants, making many of them eligible for tax refunds under the Earned Income Tax Credit even for years when they cheated on their taxes, working off the books and refusing to file tax returns...

2015 has started off with a divergence of central bank policies, a Trillion Euros of quantitative easing, slow labor market improvements and Republicans in Congress who can no longer just blame Harry Reid for Obamacare.  

Amidst slow but mostly positive economic growth, an historic decline in oil prices, near-zero interest rates, non-inflation and the ardent pursuit of unconventional monetary policies by the world's most important central banks, it is tempting to be clever and assume that the bull market is in jeopardy.