Fourth Quarter – 2018

Quarterly Newsletter to Retirement Plan Participants

Market Update

It was a rough finish to a volatile year. During the last few months of 2018, investors were hit with a combination of factors — U.S.-China trade, the slowing economy, a Fed that is tightening through a combination of interest rate increases and unwinding of its balance sheet, Brexit, political uncertainty in the Eurozone and more recently the U.S. government shutdown – that led to a brutal selloff in stocks, ranging from 13 – 20%.

A year ago, the global economy was firing on all cylinders. Since then, the factors mentioned above have led investors to question growth prospects for the global as well as the domestic economy and earnings in 2019. As a result, prices have been reset dramatically – Apple, for example, dropped 31% from September 30 to year‐end, which had a significant impact on equity benchmarks as it represents the largest holding in various indices.

Our expectation is that the upswing in volatility that disrupted global markets last year will likely persist in 2019, driven by slowing economic momentum, tighter liquidity, and political risk. So, in all likelihood the wild swings we witnessed in Q4 will this year become more the norm than the exception, creating perhaps some angst but also an opportunity for long-term investors.

As we’ve discussed in previous newsletters, you benefit from market volatility as a 401(k) participant because dollar cost averaging allows you to buy low when the market is down. By maintaining your contributions, and growing them if possible, you stand a better chance of growing your nest egg with the ultimate goal of having a comfortable retirement.

Plan Update

EMBREE FINANCIAL works diligently with the 401(k) Investment Committee to provide you a best‐in‐class Retirement Savings Plan. Together, we regularly monitor investment performance, mutual fund quality, and plan costs.

Please  contact  us  at  312‐527‐5565  if you  have  any  questions  regarding your Plan, expenses, industry trends or your own retirement strategy.