Everyone expects noisemakers to make an appearance for New Year’s Eve celebrations around the world. Throughout 2019, however, the noise seemed ceaseless. Numerous and repetitive headlines shouted crisis and clamored for attention: impeachment, protests in Hong Kong, rising income inequality, mounting national debt levels, Brexit, and labor strikes just to name a few. The U.S. Equity markets largely ignored most of the noise and instead rationally focused on what really matters for long-term returns: low inflation, low interest rates, decent GDP growth, corporate earnings growth, and strong balance sheets.
As we enter 2020 and the presidential election draws near, the noise will likely become deafening. We cannot let politics get in the way of investing.