Why January will be rough on Wall Street

Photo: Xinhua / Wang Ying
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LEXINGTON, Ky. (WKYT/SWD) - Historically, January is a rough month in the markets. Matt Dicken, CEO and founder of Strategic Wealth Designers expects 2019 won't be any different.

Nearly 75% of the time, the market ends the year in the same direction as the month of January, according to Fortune.com. Dicken says the current landscape shows some current and new roadblocks for the market.

"Right now there's concern that the truce called by the U.S. and China in the tariff battle will not hold and that is going to affect the markets," Dicken says.

As is always the case, safeguarding your stock while still getting a return depends on where a person is in life.

"For those who are younger, if the market is down, January could be a great time to buy in at a 'discount,'" Dicken says.

For those already in the market or near retirement, he says January would be a great time to consider re-positioning assets to a safer investment. "Sometimes that is moving to cash for a bit or moving to a 100% safe option that has no risk and no fees that still can give you a reasonable rate of return in the 5 to 8% range," Dicken says.

Bonds, on the other hand, are not a safe place to be invested right now, because of rising interest rates. "Bonds are going to continue to struggle as they did in 2018," Dicken says. "They are less risky than stocks, but still have a lot of risks."

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