Denali Wealth Management

2018 Q4 Market Commentary

General Market Commentary as of December 31, 2018

Stock market Investors certainly are relieved that 2018 is over.

No wonder. It was a bruising year, the worst since 2008 during the financial crisis, as the S&P 500 fell 6.2% and a bear market seemed all but inevitable with the S&P 500 down more than 19% from a September high.

Clearly Fed policy is front and center to a lot of what is driving financial markets these days. There’s still a disconnect between what investors see (slowing economic growth) versus what policymakers see (economic growth is still pretty good).

Ten-year Treasury yields rose to their highest levels since 2011 as the Fed raised their target rate for the fourth time in December. In spite of those raises, bond yields still remain below their historical averages.

Meanwhile, one lingering issue has been overshadowed by the Fed lately: trade talks with China.

Market Recap

Tot Return3-MO*12-MO*3-Year*5-Year*Closing Value
S&P 500-13.97%-6.24%7.04%6.28%2,506.85
Dow Jones Industrial Average-11.83%-5.63%10.21%7.07%23,327.46
NASDAQ Composite-17.54%-3.88%9.84%9.70%6,635.28

Source: Morningstar. The S&P 500, Dow Jones Industrial Average, and NASDAQ Composite are unmanaged indexes. It is not possible to invest in an index. Past performance is no guarantee of future results. * Price only. Does not include dividends.

All overviews and commentary are intended to be general in nature and for current interest, educational purposes and factual reference only and are subject to change based on market and other conditions.

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