Investment Review – February 2019
- The S&P 500 surged 8% in January, ending 14.0% higher than the low reached on December 24. The dovish guidance from Fed Chairman Jerome Powell was a primary factor underpinning the market’s advance.
- The strong U.S. dollar remains a headwind for corporate revenues. On a trade-weighted basis, the greenback surged just shy of 8% in 2018.
- MPs in Britain’s House of Commons voted overwhelmingly on January 15 to reject the Brexit withdrawal agreement. The withdrawal agreement sets out exactly how the United Kingdom will leave the European Union (due to take place on March 29, 2019). Negotiations have been taking place between the UK and the other EU countries. Prime Minister Theresa May is expected to bring back her revised Brexit plan for another vote in Parliament later in February.
Sources: Bloomberg LLC, U.S. Commerce Department, Bureau of Labor Statistics, Dow Jones Inc. MarketWatch, Standard & Poors, Federal Reserve Bank, FactSet
Disclosure: This commentary reflects the opinions of Welch & Forbes based on information that we believe to be reliable. It is intended for informational purposes only, and not to suggest any specific performance or results, nor should it be considered investment, financial, tax or other professional advice. It is not an offer or solicitation.
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