U.S. stocks retreated yesterday as investors turned cautious after initially cheering reports that the U.S. and China were close to completing a landmark trade deal. Concerns that stocks are becoming too expensive on the back of a two-month rally from December lows are also weighing on sentiment.
Construction spending fell a sharp 0.6% in December, according to a report long delayed by the partial government shutdown earlier this year. Economists had forecast a 0.3% increase. Despite the decline at year end, construction spending rose 4.1% in 2018 compared to 2017.
Stocks of managed-care companies continued their sell-off yesterday, in the aftermath of the “Medicare-for-All” bill introduced last week. The bill proposes a simplified health-care system by moving to a single-payer model, with the transition from the current multi-payer system taking just two years. Although analysts suggest the legislation has little chance of progressing, investors remained unnerved as Congress continues to feel pressure to take action on cutting health-care costs.
According to the American Association of Individual Investors 6 days before the start of current record-breaking bull market over 70% of investors didn’t want to own stocks, today only 20% of investors don’t want to own stocks. Proving yet again investors have terrible timing.
With Northwest Quadrant Wealth Management, I'm Tyler Simones