February 7, 2018 
New Office

Fusco Financial Associates



Super Bowl 52 will go down in history as a time when Eagles made a miracle happen and became the unlikeliest champs. The ebullient city's post-game celebrations lingered well into Monday morning because they beat the expected-six-time winner, New England Patriots. That's the story about all expectations; when the plausible event is overplayed, any movement away from the proposed outcome is witnessed with an exaggerated reaction. 
Equity markets have been on a rise for about a year and a half, hitting all-time highs most months. In mid-January of 2018 alone, the Dow crossed the 26,000 benchmark. This has led the investors to expect the upward market climb to be the new norm and a couple of percentage point drop in the markets suddenly gets a 'crash' status.
In reality, while the shed of over 1,150 points in Dow this Monday was recorded as the largest one day drop in index history, on a percentage basis, it was under 4.5%, which is not even in the top 20 negative single day movements. Meanwhile, the fundamentals remain strong and intact. Accelerated corporate earnings, increased wage growth, justified valuations, and a strong economic outlook continues under the backdrop of synchronized global growth.
The recent sell-off is more of an outcome of the process of reversion back to mean. Because of the overtly bullish sentiments of 2017, a market correction is very normal and somewhat natural. Investors will likely witness some more inevitable volatility as a result of this, which may present buying opportunities. Sticking to a disciplined investment strategy with a well-diversified approach will be needed to weather the distractions and staying on target with long-term goals.
If you would like to schedule a time to meet or have any questions or comments, please respond to this email and we will get back to you shortly. As always, your comments and calls are always welcome.

With My Best Regards,
Tony Fusco, MSFS, ChFC®, AIF®, CAP®, AEP

Fusco Financial Associates, Inc.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc.  Fusco Financial Associates, Inc. is not a registered broker/dealer and is independent of Raymond James Financial Services. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual, and are not necessarily those of Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. Please note direct investment in any index is not possible. There is no assurance that the opinions, statements or forecasts mentioned will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to making any investment decision. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.   Past performance does not guarantee future results.

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