Investment Strategies: From Wall Street to Main Street Hingham MA

By Craig Hartnett Hingham MA

Back in August, the U.S. stock market suffered the largest monthly loss in more than 3 years. The question individual investors needed to understand was whether the decline in stock prices was a short-term correction or the beginning of a bear market.

I outlined that in order for the decline to be the beginning of a new bear market and not a correction, there would need to be a recession or meaningful economic downturn on the near-term horizon, which I outlined was not expected.

With the stock market back to almost its all time high, it’s confirmed that the August decline was a correction.

Contrary to many viewpoints, the expected increases in policy interest rates are not positive for the U.S. economy in terms of future growth and employment gains or the equity markets. However there is a lagged negative effect and even a December rate increase will have a modest impact on the stock market through the rest of 2015.

This is meant to provide perspectives on investment strategies and is not a recommendation from Craig Hartnett to investors in Hingham MA and the South Shore community.