Last December, after the market experienced a severe drop, Granite Group Advisors sent out a note to buy the market. Not because we are market timers, but simply because the sell off made the market’s valuation relatively inexpensive. Our optimistic outlook of 20%+ greater returns proved to be conservative. The S&P 500 is now up 37% since that note.
What’s happening? We have stated for years that it is important to remember that politics do not matter as much as keeping a keen eye on policy from the executive branch and the FED. The US has experienced impeachment , trade wars, North Korea and political upheaval and with all that, the markets are hitting new highs! Granite Group believes, by the Fed keeping rates low and with a decent economy, the general market indexes are fully valued based on historical metrics.
It’s not the price of the market, it’s the valuation of the market. The markets are the greatest predictors of future economic growth. Sometimes the markets get too enthusiastic. Granite Group believes that the 2020 returns will not be as robust. If you are retiring or in need of funds, please make sure your allocation reflects your risk and needs.
For more detailed conversation on understanding how GGA performs manager due diligence, personal allocation process or general discussion on the difference between a consultant and advisor, please call us directly at 203-210-7814