HFG Perspectives – December

December 5, 2013

The slow and steady advance continues, as does slow and steady economic improvement. Broad market stock indexes in the U.S. as well as bond yields were up marginally in November, and international markets were mixed.

Little changed on the economic front. Labor markets, the consumer, manufacturing and the economy as a whole continued to show improvement in the U.S. Developed international markets produced no major news, and emerging markets continued to slow but in a relatively stable manner.

Now that Thanksgiving is over, we are moving into what has historically been an abnormally strong period for stocks. Economic activity typically picks up in the fourth quarter due to Holiday shopping, and, historically, that has led to the “Santa Claus Rally.”

We have no idea if the Santa Claus rally will show up this year, but given the strength of the market through the first 11 months of 2013, we wouldn’t be surprised. At the same time, we are not believers in making large shifts in portfolio allocations based on something as simple as the calendar. Your plan is more important than the date.

At the same time, the sheer lack of volatility that we’ve seen in 2013 is welcomed. After the 2008 – 2011 period where stock market volatility was far higher than normal—and investors were more on edge than normal—it’s nice to be in a more tame environment.

As friends, we hope that the rest of your holiday season is fulfilling and meaningful. As investors, we hope that the strength of 2013 can continue to provide us all with abundance and prosperity in 2014.

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Examples are hypothetical in nature and are for illustrative purposes only. HFG Wealth Management, LLC (“HFG”) is an investment adviser registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. The views expressed by the author are the author’s alone and do not necessarily represent the views of HFG or its affiliates. The information contained in any third-party resource cited herein, including but not limited to other blogs, websites or articles, is not owned or controlled by HFG, and HFG does not guarantee the accuracy or reliability of any information that may be found in such resources. Links to any third-party resource are provided as a courtesy for reference only and are not intended to be, and do not act as, an endorsement by HFG of third party or any of its content or use of its content. The standard information provided in this article is for general educational purposes only and should not be construed as, or used as a substitute for, financial, investment, or other professional advice. If you have questions regarding your financial situation you should consult your financial planner, investment advisor, attorney or other professional. A copy of HFG’s current ADV Part 2A discussing HFG’s investment advisory and financial planning services and fees is available for review upon request or at www.adviserinfo.sec.gov.



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