Investing in 2019: Finding Signals Within the Noise

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By Prabha Ram - January 23, 2019

As we begin 2019, investors are being pummeled by negative news and data points on politics, trade, Central Bank policy, oil prices etc. Economic data such as low inflation, positive employment trends and solid corporate profits are being drowned out. I would like to point out that the market backdrop is not all good, but neither is it all bad.

One of the unknowns in the new year is whether the U.S. Federal Reserve (Fed) will be overenthusiastic with rate hikes and negatively affect market liquidity. Predictions are that the Fed will raise rates one or two times in 2019. On that topic, I go back to something Fed Chairman Jay Powell said in a speech recently. He suggested that if you’re in a room full of furniture and the lights go out, you just slow down and find your way—you don’t panic.

While we evaluate all market movements and their causes, I’m optimistic about economic conditions in the United States, as well as the opportunity to find or hold on to well-run companies with durable business models at attractive prices.

Check out my 2019 outlook video to find out more—including what I look for in a company before investing in it.

Prabha Ram
Prabha Ram

Transcript

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      The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.