2019 Advisor Economy Outlook

By Brent Meyer — SafeMoney.com Founder & Editor Reviewed by Licensed Financial Professionals  |  SafeMoney.com — Trusted Since 2011  |  Updated Regularly Quick Answer: Explore the 2019 Advisor Economy Outlook for retirement planning insights. Stay informed with expert advice on safe money alternatives. Learn more! As 2019 begins , two new surveys suggest that both advisors and economists aren’t so optimistic about where the economy is headed. This kind of insight from industry experts is useful, but especially to those who are approaching retirement. Knowing what pundits and advisors believe could lie ahead, and exploring what action can be taken in case of any untimely disruptions to their portfolios , is critical to those within five to 10 years of retirement. So, what do advisors and economists see when they look ahead? They see the shakiness of 2018 leading to a potentially rocky 2019. What Just Happened? While your 401(k) or retirement plan surely felt the impact of the volatile 2018 stock market, recapping the year can show us just how volatile it was and how we got to our current sense of unease. Writing in his financial blog, A Wealth of Common Sense, Ben Carlson, CFA, compares 2018 to 2017 with alarming clarity. Among the findings he recaps: 2017 saw 62 new all-time highs of the S&P 500. By contrast, 2018 logged just 18 new all-time highs. The maximum drawdown from peak-to-trough was -2.8% in 2017, one of the lowest intra-year losses in history. In 2018 that figure was just short of 20% (and occurred over a period of less than three months). Plus, there was a 10% correction earlier in 2018. There wasn’t a single down month in 2017, which has never occurred in the history of the stock market. In 2018, however, there were 4 down months, all with relatively large drops (-3.6%, -2.8%, -6.8% and -9.0%). Carlson says, “Looking at the differences in the stock market between 2017 and 2018 can be instructive because it shows the Dr. Jekyll and Mr. Hyde nature of investing in equities.” Looking into the Future InvestmentNews surveyed 371 advisors for the year-end survey it just released. Among other questions, the respondents were asked to name the biggest issue facing the financial advice industry in the year ahead. The highest number of respondents (28%) ranked uncertainty over the U.S. political system as their top concern. In a follow-up question designed to measure how strongly they felt, advisors were asked to rank their le