Rocky Start to New Year is No Surprise

By Joe Williams, CFA
January 5, 2016

U.S. stocks got off to a rocky trading start in the new year, buffeted by continuing concerns over global economic slowdown, yesterday's drop in Chinese stocks, downward pressure on energy prices and increasing political tensions in the Middle East. Markets are unsettled and may remain volatile as these developments play out. Even though downside risks to global growth exist, our expectation is that these impacts will be manageable and not enough to derail the U.S. economy's upward, albeit slow, general trajectory.

Commerce Trust Company
Key takeaways this week:
  • Overvalued equity markets can lead to 3% to 7% corrections almost anytime.

  • U.S. financial markets are still strongly influenced by the economic slowdown in China.

  • Political tensions intensifying in the Middle East are affecting the U.S. economy.


Past performance is no guarantee of future results, and the opinions and other information in the investment commentary are as of January 5, 2016. This summary is intended to provide general information only and is reflective of the opinions of Commerce Trust Company Investment Policy Committee. This material is not a recommendation of any particular security, is not based on any particular financial situation or needs, and is not intended to replace the advice of a qualified attorney, tax advisor or investment professional. Diversification does not guarantee a profit or protect against all risk. Commerce does not provide tax advice or legal advice to customers. Consult a tax specialist regarding tax implications related to any product and specific financial situations. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. All expressions of opinion are subject to change without notice depending upon worldwide market, economic or political conditions.



joe williams
Joseph C. Williams, III, CFA® Senior Vice President, Director of Investment Strategies Commerce Trust Company
Joe is the director of investment strategies for Commerce Trust Company as well as a senior portfolio manager. Additionally, he serves on the Investment Policy Committee and the Equity Strategy Committee. Joe is the co-manager of the Commerce Growth and Mid-Cap Growth strategy. He has more than 37 years of experience in investment management with Commerce Trust. He received his bachelor of science degree from Drake University and is a member of both the Kansas City Society of Financial Analysts and the CFA Institute. He holds the Chartered Financial Analyst® designation.