Q1 2016 update

Here is our market update for Q1 2016.

• Markets continue to see increased volatility and we expect this to continue.  In Q1, markets were down -10% to -14% in mid-quarter.
• It is important to have a plan and stick to it.  Stock volatility is normal.
• Quite a run. Since the February 11, 2016 lows, over just nine weeks, the S&P 500 has gained 14%. The rally has been driven by a number of factors, chief among them better U.S. economic data, higher oil prices, the Federal Reserve Bank’s (Fed) slower rate hike timetable, increased confidence in China, and more stimulus from overseas central banks. These factors have enabled stocks to trade more on fundamentals than fear, pushing the S&P 500 to within 2.4% of its all-time high.
• 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).
• 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.
• There is never a good time for a less than optimal portfolio.  If you need help, give us a call or email.
• Click below to download our slides for Q1 2016

QMR_Q1_2016 and market outlook PDF 

See our previous blogs:

• Risk Happens Fast!
• Keep Calm or Freak Out?
• The Pledge Most Advisors Won’t Sign!

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Thanks for reading.

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