Your browser does not support JavaScript
 

Blog & News

Perspective on Recent Market Volatility
Posted By:  Dave Wilder CFP®, CTFA, MST, AIF®, CEPA
Monday, October 29, 2018

The following is a message from Total Wealth Planning relative to recent market performance and volatility:

 

Stocks in the U.S. recorded solid gains in the third quarter of 2018, with the large-cap S&P 500 Index logging its biggest quarterly advance in nearly five years. The small-cap benchmarks lagged the broader market, but all of the major indexes reached new highs. Growth stocks handily outpaced value shares, largely due to outperformance experienced earlier in the quarter. International markets also generally rose during the quarter led largely by Japanese stocks.  These strong returns occurred during a period of low volatility compared to previous quarters this year.

 

The investment market environment changed dramatically, however, during the first few weeks of October.  Volatility increased and markets are now close to the levels seen at the beginning of the year.  At the same time though, the U.S. and most countries overseas continue to experience a “Goldilocks economy”, one that is neither too hot nor too cold. This is the most desirable form of economic growth, especially when accompanied with a low rate of inflation. Under these conditions, the investment markets typically experience short term volatility at some point during the year, but most often provide positive returns over the course of a full calendar year. Further, the market volatility experienced in the last few weeks is more in line with historical norms as illustrated in this chart.

As the illustration shows, with the exception of 2017, it is not unusual to see movements in a single day where the markets either rise or fall by 1% or more. For the remainder of 2018, we expect that the markets will continue to exhibit volatility and it is reasonable to still expect positive results. 

 

At Total Wealth Planning, we resist employing reactionary and short-term trading techniques which most often result in poor timing, unsatisfactory results and missed opportunities for growth. Instead, we maintain a disciplined and time tested approach, based upon the Nobel-Prize winning Modern Portfolio Approach to investing. As you would expect, however, we will continue to look for rebalancing opportunities, tax loss harvesting and will tune the portfolios as opportunities arise. In the meantime, if you have any questions or concerns, or would like to discuss further, please do not hesitate to contact us.  


Regards,

 

Total Wealth Planning
Investment Policy Committee

 

David Wilder, CFP®, MST

dave@twpteam.com

 

Rob Siegmann, MBA

rob@twpteam.com

 

Rob Lemmons, CFP®, CPA

rlemmons@twpteam.com

 

Jon Andre, CFP®

jon@twpteam.com

 

Chris Allen, CFP®

callen@twpteam.com

 

Joel Musser, CFP®

joel@twpteam.com

 

Kelly Boone

kelly@twpteam.com





 
 
Subscribe To Our Blog

Blog Categories

  • In the News
  • Business Owners
  • Charitable Planning
  • Client Experience
  • College Planning
  • Estate Planning
  • Executive Compensation
  • Firm Updates
  • Investments & Market Updates
    • 08/18/2020 - Ignoring Short-Term Oriented I
    • 08/11/2020 - Top 10 Reasons NOT to Invest i
    • 07/30/2020 - The Potential Hazard of Invest
    • 07/08/2020 - Quarter 2, 2020 Market Review
    • 04/06/2020 - Quarter 1, 2020 Market Review
    • 03/31/2020 - Humans Are Not Wired for Disci
    • 03/23/2020 - Market Update, March 23, 2020
    • 03/16/2020 - Market Update March 16, 2020
    • 03/11/2020 - Market Update March 11, 2020
    • 02/28/2020 - The "Health" of Your Portfolio
    • 01/08/2020 - Quarter 4, 2019 Market Review
    • 12/03/2019 - Less Cash in Your Portfolio Yi
    • 10/04/2019 - Quarter 3, 2019 Market Review
    • 07/05/2019 - Quarter 2, 2019 Market Review
    • 04/12/2019 - Quarter 1, 2019 Market Review
    • 04/11/2019 - Looking Beyond Average Investm
    • 03/12/2019 - Dimensional Fund Advisors – A
    • 01/24/2019 - 2019 Annual Limit Changes
    • 01/08/2019 - Quarter 4, 2018 Market Review
    • 12/12/2018 - Why Should You Diversify?
    • 10/29/2018 - Perspective on Recent Market V
    • 10/08/2018 - Quarter 3, 2018 Market Review
    • 08/08/2018 - E+R=O, your reactions determin
    • 07/06/2018 - Quarter 2, 2018 Market Review
    • 05/31/2018 - Bitcoin vs Gold
    • 04/09/2018 - Quarter 1, 2018 Market Review
    • 03/26/2018 - Another Tariff, Another Downtu
    • 02/07/2018 - Professor Jeremy Siegel @ Xavi
    • 01/05/2018 - Quarter 4, 2017 Market Review
    • 10/05/2017 - Quarter 3, 2017 Market Review
    • 07/14/2017 - What is Value Style investing,
    • 07/10/2017 - Quarter 2, 2017 Market Review
    • 05/24/2017 - Is Anyone Managing Your 401(k)
    • 04/05/2017 - Quarter 1, 2017 Market Review
    • 03/01/2017 - Are New Stock Market Highs a C
    • 01/05/2017 - Quarter 4, 2016 Market Review
  • Retirement Planning
  • Security & Privacy
  • Taxes
  • Financial Planning
 

INVESTMENT
MANAGEMENT

Our investment management process is focused on helping you maintain financial stability, preventing mistakes and accomplishing your investment objectives. We don’t just focus on market performance or predictions. We focus on what performance means and how it impacts your long-term goals. It starts with returns, but it is about making life decisions. Working together, you gain a degree of confidence when uncertain times come.

Learn More
 

RETIREMENT AND
TAX PLANNING

We help you determine how long to work and when to retire to continue your lifestyle. We analyze when and how to take money from your portfolio to replace your paycheck, with an eye on tax efficiency, spending, healthcare and social security maximization. We address the primary concern of having your money last for the rest of your life.




Learn More
 

HOLISTIC/COMPREHENSIVE
PLANNING

Our comprehensive planning focuses on real life. It’s putting a date to your goals and steering your life based on analysis, giving you choices and alternatives. You gain the ability to see how reachable your goals are. It starts with getting to know you and the way you want things done to fulfill your needs. We take into consideration your family and all the secondary factors that go into a comprehensive financial plan.


Learn More

WE'VE BEEN LISTENING
FOR OVER 30 YEARS

Total Wealth Planning’s team of Certified Financial Planners® are here to listen to you and your questions. We never want you to feel rushed. The real benefit is having a road map to help ensure the key elements of your financial life are in order.


Total Wealth Planning Associations
WE ARE PROUDLY ASSOCIATED WITH

CONTACT INFO


 

WHAT'S NEW AT TWP


       
CORPORATE EXECUTIVES

WEALTH-BUILDING FAMILIES

RETIREES

BUSINESS OWNERS

DISCLOSURES
ECONOMIC OUTLOOK

BLOG & NEWS

VIDEO LIBRARY

FORM CRS
   
4665 Cornell Rd. Suite 160, Cincinnati, OH 45241 4665 Cornell Rd. Suite 160, Cincinnati, OH 45241
513-984-6696 513-984-6696
info@twpteam.com info@twpteam.com
Retirement Blunders to Avoid
Monday, September 14, 2020


SEE MORE >

Follow us on Google+
Blog & News
Follow us on Twitter
Find us on Facebook
DISCLOSURES | COPYRIGHT © 2020. TOTAL WEALTH PLANNING. ALL RIGHTS RESERVED.
GET STARTED
READY TO
GET STARTED?