How quickly things can change.  The market’s sharp pull-back in the 4^th quarter of last year bottomed in late December as the S&P 500 dropped almost 20% from the September highs.  Given the widespread concerns at that time many investors likely couldn’t have envisioned that stocks would hit all-time highs just 4 months later.  Yet, that’s exactly what we’ve seen.  The stock market’s “V-shaped” recovery culminated in new all-time highs for the S&P 500 at the end of April, with the index now up about 17.51% for the year (YCharts).

We continue to believe that a near-term recession is unlikely as our economic dashboard points towards positive momentum over the short and midterm, and therefore we want to remain fully invested.  However, our dashboard has also pointed to the increased risk of recession over the long term. With the stock market near all time highs, we wouldn’t be surprised to see some volatility in the months to come as there are a number of risk factors to watch including; ongoing trade negotiations, Brexit, 1^st quarter earnings season, and central bank policies around the world to name a few.

Our economic dashboard will continue to guide us through these more volatile periods and we’ll be ready to make changes to portfolios if needed as we monitor risks closely.

Sincerely,

Your TLWM Team

*Investment advice offered through TLWM, LLC., a registered investment advisor.

* The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.

* The Standard & Poor’s 500 (S&P 500) is an unmanaged index. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment.

* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

* Past performance does not guarantee future results. Investing involves risk, including loss of principal.

* You cannot invest directly in an index.

* Consult your financial professional before making any investment decision.

* Stock investing involves risk including loss of principal.

* This document is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Texas Legacy Wealth Management and its representatives are properly licensed or exempt from licensure.