As for financial markets today, we just finished our 6th consecutive positive quarter for the S&P 500, albeit with the recent volatility in September it does not feel that way. The S&P 500 is up about 16% YTD (year-to-date), the Dow Jones Industrial Average is up about 12% YTD and the NASDAQ is up about 13% YTD. Investment-Grade Bonds (represented by the Bloomberg Barclays Aggregate Index) dampened volatility for portfolios in September as they outperformed equities on a relative basis but are still negative on the year.
Recent headlines frame a daunting wall of worry for investors as Wall Street Bulls sound a bit more cautious on media outlets. Rising interest rates, raising the debt ceiling, the US government defaulting on its debt, and a government shutdown would make anyone fearful of what is to come in the markets. However, as some investors worry about a correction that will inevitably come, we prepare for the volatility and the opportunity it presents like buying great companies at lower prices or managing taxes for our clients as Uncle Sam is always lurking and happy to tax capital gains.
We are excited to close the chapter on September as it is historically one of the worst months of the year for the equity markets and are ready for a fall filled with crisp air, football, and a little more volatility in the equity markets. We thank you for your support and trust in our company and cannot wait for our next discussion to help you reach your financial goals. As always, “you do the dreaming, we’ll do the math.”