Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.
David Nelson:
Thanks, Brandy. Appreciate it.
Brandy Auterson-Hurst:
The first quarter didn’t get off to a great start. Is there any historical signal we can take from that?
David Nelson:
Actually, there is, and it’s actually a pretty reliable signal. When we look back over the long term, what we brought along, as far as with our chart today, is going to give people a nice visual as far as how markets perform. We’re looking at quarter two through quarter four. The blue line is illustrating when quarter one has been up, and the red line is illustrating as far as when the quarter one was negative. We’re looking at 76 years here of data. In the years when quarter one was up, the market actually went up another 6% to 7% on average from April through December. That’s what the blue line is illustrating. But when quarter one was down, as we see it red, the returns have averaged 2%. There’s many years that that was negative returns as far as that took place there. What we basically look at here is that it doesn’t guarantee necessarily a rough year since we had a rough start to the year, but it’s been a pretty good early indicator of what people might expect as far as looking forward for the balance of the year.
Brandy Auterson-Hurst:
Okay. What does this mean for investors?
David Nelson:
Well, I think the bottom line as always is basically to tell people that these charts and graphs and whatever that we bring in here, we try to put them together to try to come to some conclusions to help people make wiser decisions pertaining to their money. I think the conclusion will continue to be the balance of the year a very rough year. Doesn’t mean that we’ll be down, but it’s going to be a bumpy year as we’ve had so far early in the year. The balance of the year will probably be a repeat.
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Indices mentioned are unmanaged and cannot be invested into directly.
This video includes a paid appearance.