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Bernardo Wealth Planning

September 3, 2019

Market Commentary – September 2019

Each month we highlight voices we respect from around the marketplace. Here’s what they’re saying…

  • Recent (GDP) data looks like second quarter, instead of being 2.1%, is going to be under 2%. Experts say this quarter looks under 2%. I don’t see a recession, (but) I see a meaningful slowdown More… – Jeremy Siegel
  • Stock values are fundamentally determined by the present value of expected cash flows, and when interest rates go down that’s a positive for stocks… so when I look at the decline in interest rates and the move to a more stimulative fed policy I look at that as a temporary positive effect on stocks but, that it is a non-sustainable effect on stocks for the long run. … More… – Ray Dalio, Bridgewater Associates
  • We do not view the inversion of the yield curve as a recessionary signal, and see central banks’ dovish pivot stretching the growth cycle. U.S. 10-year Treasury yields have dropped to the lowest level in three years. German 10-year government bond yields hit all-time lows, deeper in the negative territory. Yields on longer-maturity bonds also declined, with 30-year yields plunging to record lows in the U.S., UK, Germany and Switzerland. A U.S. Treasury yield curve inversion – with two-year yields now exceeding their 10-year counterparts – further spooked markets. Such inversions in the past have often foreshadowed recessions, but we believe the signaling power of the yield curve has diminished amid changing market dynamics. More… – BlackRock Investment Institute

As always, we continue to believe that one’s circumstances and risk profile should determine the appropriate mix of investments, and not media headlines. Please contact us if you ever have any questions or concerns about your accounts or any news you hear.

Note: Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment, asset class, or investment strategy (including the investments and/or investment strategies recommended by the adviser), will be profitable or equal to past performance levels.  Information in this commentary is gleaned from third party sources, and while believed to be reliable, is not independently verified.

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This material does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this material may not be suitable for all investors. Bernardo Wealth Planning recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives. © 2016 Bernardo Wealth Planning

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