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The Markets

Wonder what the Federal Reserve’s 40-yard dash time is?

On Wednesday, the Fed juked like an NFL running back and left investors wondering whether they should buy or sell. Heather Long of The Washington Post reported the U.S. central bank:

1. Lowered its 2019 estimate for U.S. economic growth to 2.1 percent
2. Announced its intention not to raise rates in 2019
3. Indicated it will stop shrinking its balance sheet in September

Fed Chair Jerome Powell explained, “My colleagues and I have one overarching goal: to sustain the economic expansion with a strong job market and stable prices for the benefit of the American people. The U.S. economy is in a good place and we will continue to use our monetary policy tools to keep it there…We continue to expect that the American economy will grow at solid pace in 2019, although slower than the very strong pace of 2018.”

The Fed’s decision to adopt a looser monetary policy was informed by a variety of factors, including slower economic growth in the United States, China, and Europe, as well as unresolved policy issues like Brexit and ongoing trade negotiations.

Investors weren’t sure what to make of the Fed’s moves. Initially, major U.S. stock indices trended higher as investors celebrated the benefits of accommodative monetary policy. By the end of the week, though, many investors had changed their minds and fled to ‘safe haven’ investments, pushing long-term Treasury rates lower. Alexandra Scaggs of Barron’s reported:

“When short-term yields rise above long-term yields, it’s known as an inverted yield curve, which is seen even by central bankers as a sign that an economic contraction could be on the way…Benchmark 10-year Treasuries rallied Friday morning, driving their yields below those of the three-month U.S. Treasury.”

So, is recession imminent in the United States? It’s possible but unlikely. According to a source cited by Barron’s, the last six times the yield curve inverted for 10 days or longer, recession occurred within the next two years.

No matter how the economy and/or markets perform, it may not be a good idea to make sudden portfolio changes. If you’re feeling uncertain, give us a call. We can discuss changes you may want to make to your portfolio.

SCANDINAVIA SWEEPS AGAIN. The 2019 United Nation’s World Happiness Report was published last week. The Finns remain the happiest people in the world. In fact, happiness in Finland has been trending higher since 2014.

People in Denmark and Norway also are happier than they were previously. The average score for the Danes increased by more than the average score for the Norwegians, so Denmark is now second and Norway third.

The report’s authors explained, “…the top countries tend to have high values for most of the key variables that have been found to support well-being: income, healthy life expectancy, social support, freedom, trust, and generosity.”

The 10 happiest countries in the world, according to the report, which aggregated data on 156 countries from Gallup World Polls, are:

1. Finland (7.769)
2. Denmark (7.600)
3. Norway (7.554)
4. Iceland (7.494)
5. Netherlands (7.488)
6. Switzerland (7.480)
7. Sweden (7.343)
8. New Zealand (7.307)
9. Canada (7.278)
10. Austria (7.246)

Since the report began, happiness has increased most dramatically in Benin (#102), Nicaragua (#45), Bulgaria (#97), Latvia (#53), and Togo (#139).

The United States came in at #19. Overall, happiness levels in the U.S. have declined by almost 0.5 since the report was first issued. The report stated:

“Several credible explanations have been posited to explain the decline in happiness among adult Americans, including declines in social capital and social support (Sachs, 2017) and increases in obesity and substance abuse (Sachs, 2018)…I suggest another, complementary explanation: that Americans are less happy due to fundamental shifts in how they spend their leisure time…the way adolescents socialize has fundamentally shifted, moving toward online activities and away from face-to-face social interaction.”

Weekly Focus – Think About It

“The human race has only one really effective weapon and that is laughter.”
                                                          --Mark Twain, American author



Week of March 18, 2019
Week of March 11, 2019
Week of March 04, 2019




Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Cornerstone Investment Advisors, LLC is not affiliated with Kestra IS or Kestra AS.
Kestra Investment Services, LLC does not provide tax or legal advice.
*This newsletter was prepared by Peak Advisor Alliance. Peak Advisor Alliance is not affiliated with the named broker/dealer.*The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
*Gold represents the London afternoon gold price fix as reported by the London Bullion Market Association.
*The DJ Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT TR Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
*Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
*Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Asset allocation and diversification do not protect against loss of principal.
*Past performance does not guarantee future results.
*You cannot invest directly in an index.
*Consult your financial professional before making any investment decisi