Quarterly Investment Update
August 19, 2015
According to Morningstar, as of August 18, 2015 the total U.S. Market index is up 3.44% YTD and the MSCI World Ex USA Index (representing approximately 23 developed market countries—excluding the U.S.) is up 3.66% YTD. Over the course of this year, we have seen U.S. small, mid, and large cap growth stocks outperform value stocks while international emerging markets have struggled, down approximately -10% YTD.
In an effort to keep our models current with the changing financial landscape, we have made a slight move from growth oriented U.S. stocks into more value oriented U.S. stocks. Also, in preparation for an eventual interest rate hike, we have slightly decreased our holdings in intermediate term bonds and shifted toward stocks and international emerging markets.
As always, it is our intention for clients to have a well-diversified portfolio made up of several asset classes across the broad stock and bond market. In addition, we rebalance portfolios on a periodic basis in an effort to take advantage of any shifts in the market over time.
All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
Value investments can perform differently from the market as a whole. They can remain undervalued by the market for long periods of time.
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.
International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.