In the fourth quarter of 2019, the S&P 500 Index rose nearly 10% in contrast to 2018 where the Index was down 13.5%. What a difference a year can make. Our Winter 2019 Investor Letter looks at the Decade of the 2000s versus the Decade of 2010s and certainly the most recently completed one was rewarding to investors. As the new year and decade unfold the market will grapple with headlines associated with Brexit, the ongoing trade and tariff situation, Central Banks around the world easing again and additional conflict in the Middle East. The market won't move higher in a straight line, but the market's bias over time is one where it does trend higher. Climbing a "Wall of Worry" may be the result in the coming year. Since the decade of the 1980s, only the decade of the 2000's saw multiple calendar year declines. The 1980s, 1990s, and 2010s each only saw one down year out of ten. So in those thirty years, the market was down in only three of the years.
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More insight on our views are covered in the Investor Letter accessible at the below link.
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