2015 Not A Good Year For Stocks, So Will 2016 Be Better?
PITTSBURGH (KDKA) -- If you have a piece of the stock market through a 401k or retirement fund, it's hard to be happy with the year just passed.
"I'm sure when people see and evaluate their portfolios this year, there's going to be a level of disappointment, maybe even surprise," said Andre Weisbrod from STAAR Financial Advisors at a taping of the Sunday Business Page, hosted by KDKA money editor Jon Delano
Delano: "I have no doubt when we get our statements for our 401ks at the end of the year and compare it what it was at the beginning of the year, there will be a lot of head-shaking."
Lou Stanasolovich of Legend Financial Advisors had his own take.
Stanasolovich: "The average stock was down about 6 percent on the New York stock exchange."
Delano: "So not a great year?"
Stanasolovich: "No."
The local financial advisors summed up 2015.
"It was a difficult year," said Weisbrod.
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On Thursday, the stock market's Dow Jones and S&P ended the year lower than 2015 began, the first time that's happened since 2008.
So can we expect better this coming year?
Weisbrod: "More often than not after a losing year, you have at least a modestly positive year. That's also happened in election years."
Delano: "A little history there."
Weisbrod: "Yeah, we're doing okay. We're just not doing very well."
Both advisors say we need to rethink and downsize our expectations, especially if we have no inflation.
"Basically zero inflation in the U.S.," says Stanasolovich. "So if we get 2 percent on treasuries, historically, that's a great number.year. If we get 3 or 4 or 5 or 6 percent on equities, home run!"
Beyond that, both Stanasolovich and Weisbrod think 2016 should be better than 2015 -- but not by much.
As for the Dow Jones at this year's end...
"Maybe up 5 percent from here," predicts Weisbrod.
But just hedge your bets, says Stanasolovich.
"Minus 5 to plus 5."
The full Sunday Business Page airs Sunday, January 3 at 6:30 am.