HCR Wealth Advisors is a registered investment advisory firm. It is in Los Angeles, California. The major aim of the firm is to create a fruitful and long-lasting relationship with its clients. It ensures this by establishing trust and enhanced communication and education of its clients on financial strategies. The firm also helps to protect its clients against risks. Many clients have been with the firm for over ten years.
Over recent years, investors have experienced a drop in the stock markets. However, in 2017, the stock market enjoyed one of its least volatile years in history. The largest pullback was merely -3%, even though in typical years the largest pullbacks reach double digits. Given the historic low, greater volatility is expected in 2018. In the stock market, there are numerous potential causes for the expected pullbacks. These include geopolitical events, the rise in bond returns, policy changes. The unfortunate thing is that, as much as the causes are known, it is very difficult to predict the exact cause of any pullback.
There are a number of factors that attract investors into the market. Such factors include the reliable stability and growth of the U.S economy. It is not only in the United States that an economic recovery is occurring. There has been a unified global economic improvement. The global central banks have been the major contributors to this economic growth. They have been more accommodating to encourage the growth of economies.
As the economy continues to strengthen, the Federal Reserve is using its authority to manage that economic growth. The Federal Reserve raised its short-term interest rates three times in 2017 and has signaled that it expects to do so three times again in 2018.
Despite the strengthening economy, investors are not guaranteed to see returns on their investments given the expected volatility. Nonetheless, analysts expect 2018 to be good year for the companies, which are expected to benefit from the recent tax reductions. Indeed, earnings for the S&P 500 companies are projected to rise 17% in 2018.
These factors present younger investors with an opportunity to now venture into markets.
HCR Wealth Advisors is not affiliated with this website.