Market Update
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The U.S. stock market remains appreciably above long term historical valuation norms, while markets around the rest of the world are closer to their typical valuation levels. Earlier this year we saw bond yields fall to near record lows once again. This portends of lower returns on bonds in the future, as the best predictor of future bond returns over the long term is always the current yield.

 

We saw relatively little movement across broad market indexes during the third quarter of 2016, except for some slight outperformance in emerging markets bonds and equities.

 

Overall, our asset allocations are largely unchanged for the prior quarter. We are currently positioned more defensively than normal across all of our account models.

 

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The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

 

The economic forecasts set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price. Bond yields are subject to change. Certain call or special redemption features may exist which could impact yield.