Third Quarter 2015 Market Review.

I hope everyone is enjoying the fall season.

Here are some key takeaways from Q3.  In October, markets have already re-gained much of their losses from Q3.

• Page 2 – Comments about recent volatility
• Page 5 – Most asset classes and sectors were slammed after the Fed meeting and in Q3.  High quality bonds and some alternative strategies were up in Q3.
• Pages 6-8 – Major asset classes for US/ International and EM.
• Pages 9-10  – Why we build portfolios incorporate value companies, small cap, companies with momentum and companies with high profit margins.
• This market volatility is very normal.  We finally had a 10% correction in August and the market is still up 225% to 250% from the 2009 lows.
• It is important to continue to focus on your household savings rate.  Target to save 20% of gross household income each year from all sources (including company 401k match).
• During times of volatility, it is important to focus on your long-term goals and continue to save money for retirement.  See these recent blogs – Average is Not Normal, Should Investors Sell After a Correction?,  Keep Calm or Freak Out?
• We believe that it is important to focus on what you can control in life and investing.  For investing, this is building low-cost globally diversified portfolios that target the higher expected returns of value companies, small cap companies, companies with positive momentum and companies with high profitability.  These factors don’t work all of the time but over 7 to 10 year rolling periods, they tend to add incremental returns.

Click here to review our Q3 Market Review — Q3-2015 Market Review

Most people need a coach. Consider getting a 2nd opinion from a low cost, fee-only Advisor. Make sure your Advisor is a fiduciary for you 100% of the time.  We offer this free 2nd opinion service for portfolios above $500k in assets.  Most people are shocked by how much they are paying in fees to their broker or bank.  Often times, these fees are above 2% to 2.5% per year.  This is way too much to pay.  Give us a call @ 303-549-4720 and we will show you the red flags.

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All the best,

Todd Moerman

303-549-4720