Lindsey Report October

For the better part of September, the S&P 500 trended around the 2000 mark and it’s all-time-highs. However, towards the end of the month we encountered some renewed volatility with several days of significant swings. As of the writing of this letter, October has gotten off to an auspicious start with the S&P 500 having back-to-back down weeks (ending 10/5) (Reuters).

It is not unexpected that we might encounter some market turbulence and experience increased volatility, given that equities have sustained a prolonged rally. Not that I want to dredge up the ugly past, but there was a time in 2009 when the S&P 500 was under 700.

Sometimes the news media makes it sound like this move from 700 to 2000 up has been “straight up”. Well that is not the case.  We have experienced several periods of consolidation since 2009.  Remember the Greek Financial Crisis and the summers of 2010, 2011 and 2012.  Those were volatile periods.  However, for the better part of the last two years, the S&P 500 has made a fairly steady climb.  Whether or not we have any significant consolidation at this point is anyone’s guess, but I do believe it would be a good thing for equities to at least “take a pause”.   A pause and/or some consolidation, while not always pleasant, could help set the stage for future gains.

Ultimately, we want to see continued improvement in our economy, which in turn should enable companies to generate healthy profits, as well as helping improve the employment picture. We also want to see Geo-Political tensions ease. As it is basically a world economy, if this mess in Ukraine and other places escalates, it could dampen all our prospects.

On the home front, the Commerce Department recently provided their final revision to Q2 GDP. They reported that the economy grew at 4.6%, which is a very healthy number.  Additionally, we added 248,000 jobs in September, which moved the unemployment rate below 6% for the first time in years.

Lastly, I’m pleased to note that I was featured in the 9/22/14 issue of the Wall Street Journal in an article titled “Nine Five Star Wealth Managers You Need to Know”! Award based on 10 objective criteria associated with providing quality services to clients such as credentials, experience and assets under management among other factors.  Wealth Managers do not pay a fee to be considered or placed on the final list of 2014 Five Star Wealth Managers.

 

The opinions voiced are for informational purposes only and are not intended to provide specific advice to any individual. To determine which investments are appropriate for you, consult myself prior to investing. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly.  The economic forecasts set forth in this commentary may not develop as predicted and there can be no guarantees that strategies promoted will be successful.

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