Consumer spending is continuing strongly enough to drive the U.S. economy slowly forward for another year, and the Federal Reserve is aiming to keep the ball in positive territory. Kentucky financial guidance experts are feeling a 12th year of expansion in 2020. This fall’s presidential election could bring volatility. And of course the business cycle still exists, which means there should be thought of diversifying one’s assets and assessment of when to shift to a safer portfolio. It all likely means improved demand for wealth management services.
“Despite ominous headlines, we urge investors to focus on the long-term. As consumers continuing to spend and with unprecedented fiscal and monetary stimulus, we forecast continued moderate growth in the U.S. economy. While there’s no doubt that stock prices can fall without warning in the short-term, we see opportunities for patient investors. We also urge investors to look beyond stocks of large U.S. companies and consider sectors that are less richly valued such as international stocks and smaller company stocks.” — Ann Georgehead, Managing Director, PNC Wealth Management Kentucky
“We anticipate modest growth, both nationally and regionally, for the next 12 months. Amidst the nation’s longest economic expansion, accompanied by one of the longest bull markets on record, many analysts anticipate a recession in the next year. While certainly possible, a recession seems unlikely unless an exogenous (“black swan”) event emerges. While the national manufacturing economy is weakening somewhat, consumer spending continues to hold up, and the Federal Reserve remains accommodative. Overall, GDP growth of 2% or slightly less seems likely.” — Todd P. Lowe, CFA, Parthenon LLC
“With continued growth in the U.S. economy and the Federal Reserve holding interest rates low, we believe demand for stocks will remain strong in 2020, likely driving prices even higher. However, we also expect increased volatility as the second stage of China trade talks begins and as we approach the 2020 election. Knowing that volatility and periods of market decline will periodically occur, we believe it is important for investors to remain disciplined, well-diversified and focused on the long term. We also believe demand for wealth management services will continue to rise as younger boomers retire and as many investors continue to explore ways to minimize taxes, build additional wealth, and favorably adjust to changing economic and policy matters – like the recent passage of the SECURE Act.” — David A. Parks, Senior Wealth Advisor, Dean Dorton Wealth Management
“With the Federal Reserve cutting interest rates, the S&P 500 dancing around all-time highs and 30% market returns in 2019, what more can you ask for (Bloomberg)! The U.S. economy is hot, and the Fed has the pedal to the metal by incenting further debt loads with continued low interest rates and potential further cuts. From our vantage point, the momentous winds of the market are sweeping up the lay investor, exciting them about perpetual returns. The concept of international investing, although well documented with academic rigor, has been thrown out with an insatiable demand for U.S. Large Cap “FANG” tech stocks – Facebook, Apple, Amazon, Netflix and Google, which is now Alphabet. However, those who study market history know cycles are real. Today’s darling stock is tomorrow’s dweeb. 2000 to 2010 was pretty much a “dead zero” return world for the S&P 500, and now we are pretty much the exact opposite. Nobody knows when, but expect change in the proverbial investment winds … perhaps not this year but not long after. Then look to the now unloved Small Caps, Emerging Markets and Value stocks.” — Dan Cupkovic, Director of Investments, ARGI Investment Services
“2019 was a year of milestones. In 2020, we expect the progress we saw to continue, possibly fueled by better earnings and economic growth. However, the future is always uncertain and this will be the case in 2020 especially, creating risk as well as opportunity for investors. In our view, what matters most is not how you react to the uncertainty, but how you plan for it. We’re paying close attention to the presidential election, which is likely to cause volatility and market movements, but our focus will remain on the impact of policy changes such as the recently passed SECURE Act, which will meaningfully impact retirement saving and estate planning. Brexit and U.S./China negotiations also will have an impact on our economy in 2020 and beyond.” — Jim Allen, Vice Chairman, Baird
“We expect economic growth and inflation to remain low but positive in 2020, paving the way for the 12th consecutive year of U.S. economic expansion. Given low inflation expectations and slow economic growth, we expect the Federal Reserve to remain accommodative, which will keep interest rates anchored on both the short and long end of the yield curve. In light of the current economic environment, we are reviewing our clients’ financial plans with forward-looking return assumptions in the low single digits from fixed-income markets and mid-single-digit returns from equity markets.” — Keith Blakely, Investment Advisor, Stock Yards Bank & Trust, Wealth Management & Trust