As the end of the year quickly approaches, a number of factors in the current market environment could continue to keep investors on edge.
“First and foremost, the Fed is going to be a big deal because Trump doesn’t like his own Fed Chairman, but they have to raise rates again in December – I think,” said Greg Valliere, Chief Global Strategist for Horizon Investments, at the Charles Schwab IMPACT 2018 conference. “Then there’s going to be Robert Mueller. We haven’t heard much from him, but he’s got stuff that he’s been gathering. I think we’re going to hear a lot from him toward the end of the year. Then you’ve got China. I think maybe when Xi and Trump meet in Buenos Aires in late November, maybe things start to look a little bit better.”
While the U.S. economy is not heading toward a recession anytime soon, investors could be in for a flatter growth period ahead.
“Is it going to get a lot better? Hard to make that case. I think, maybe, we’re going to level off for a while,” Valliere added.
Horizon takes on a goals-based approach to investing and provides investment strategies customized to meet the individual’s goals. The fund provider identified three main goals investors may want to achieve, including accumulating wealth, preservation of wealth or distribution of wealth.
“Goals-based investing enables advisors to help clients identify their most important and meaningful financial goals in life, so they can position their investment capital to aim for those specific key objectives—on time and in line with their risk tolerance,” according to Robbie Cannon, CEO of Horizon Investments.
As a way to manage capital preservation in a flat market condition ahead, investors can look to something like the Horizon Defind Risk Fund (HNDRX), which aims to invest in a diversified portfolio of domestic equity securities, including exchange-traded funds (ETFs), while seeking to generate income, hedge volatility and reduce downside risk by buying and selling put and call options
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