It’s cold and snowy in Chicago as I write to you, and the temperature is such that the snow will stick around for a while. I am not complaining at all, for our friends in Duluth, Minnesota had three feet of snow and our friends out east experienced an ice storm. Wherever you are, I hope you are safe and warm as the holidays approach.
We have less than two weeks until the end of 2013, and there are a couple of items due to come out of Washington, D.C. that we are watching with interest. If you recall, a congressional budget conference committee was put together as part of the deal to end the October government shutdown. That committee is due to report its recommendations later this month. Also, the Federal Reserve’s monetary policy committee gets its last chance in 2013 to reduce its bond purchases. These factors could create some year-end volatility, along with the regular end-of-year profit taking and portfolio clean-up activities of the institutional investor.
Even with the potential year-end volatility, we expect nicely positive stock market returns for the year. Isn’t it great to be able to say that, after some of the events of earlier in the year? For all the drama of the government shut-down and the debt ceiling debate just two months ago, the economy has continued to improve. Not every year will be like this year, we know, and we want to take a moment to acknowledge it and be grateful.
As we step into the Christmas Season, we at CTC wish you the best. May your days be filled with the joy and peace of the holiday season.
Ann P. Wiesbrock, CFP®