January 2020 Review of Markets and EconomySubmitted by Tradition Advisers on January 17th, 2020
Financial markets experienced a bountiful decade for stocks and bonds, as a low rate environment fostered by the Federal Reserve and technological advances driven by innovation, catapulted values higher. The 2010 decade was the first decade to avoid a domestic economic recession, with accelerated growth in various sectors including technology, healthcare, and industrials.
A calm in the markets was displaced as tensions in the Middle East spurred concern early in the new year. Global equity, bond and commodity markets reacted to developments in the region that unleashed a wrath of unease.
Other highlights include:
- The RMD age for IRAs has been raised to 72 from 701/2.
- Median household income rose from $49,276 in 2010 to $63,688 in 2019.
- Performance was positive across all bond sectors in 2019.