Investment Review – November 2018

November 14, 2018 Investment Review

  1. Equities experienced a rapid and volatile correction in October. The Dow Jones Industrial Average dropped -5.1% and the S&P 500 declined -6.9%. The Nasdaq lost -9.2%, as the technology sector became a focal point of the selling during the month. While the indices rebounded from their worst levels at month’s end, they have given back much of the gains achieved in the third quarter of 2018.

  2. Third quarter earnings for the S&P 500 are tracking towards a 25% increase as the benefits of tax reform continue. One reason cited for the October correction was a concern that corporate earnings growth is peaking. Forecasted earnings growth of 7 – 10% in 2019 will be lower than 2018, but still healthy and in line with the long-term average.

  3. U.S. mid-term elections will take place on November 6. Campaigning will continue until the very end with many hotly contested races. Current polling indicates that the Republicans should retain control of the Senate, but that the Democrats could regain the majority in the House.

key investment statistics for november 2018

Sources: Bloomberg LLC, FactSetU.S. Department of LaborDow Jones MarketWatch

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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