Our portfolios are weathering the storm as well as could be expected due to having set aside cash across the board in September and adding to it throughout October and November. We have been getting increasingly cautious all year long – which has served our clients well.
After being down nearly 2% today with all 11 sectors being negative, the S&P 500 has now joined the rest of the world in the red for the year 2018. On top of that, bonds are also down – and so is gold, real estate and even Bitcoin. There is nowhere to hide.
The S&P 500 was down 6.94% and the All-World Ex-US index was down 8.21% for the month of October. Its scary out there – Happy (belated) Halloween!
…during the last 5 years of the bull market that ended in 2000, the S&P 500 suffered 7 pullbacks of 7.5% or more while climbing 147%
Major US markets finished September with positive returns with the S&P 500 index up 0.43%…
At last check, most markets around the world were down for the year, with only the USA and France showing gains.
In choppy trade so far this month, the S&P is up about 1% and is less than 1% from its all‐time high
achieved on January 26th, 2018. The 10‐year treasury yield has fallen 3.7% to 2.84%. The dollar is the
major story with the index hitting a high of 96.98 breaking out to a new 52‐week high and causing
commodities to apparently crash in price.