Dear Clients:
In time for Halloween, the markets have been scaring the pants off of investors. Indeed, we face daunting issues: Ebola, ISIS, Russian expansion, deflation in Europe, falling commodity prices. But if today’s headlines are robbing you of sleep, rest eas{ier} when it comes to your portfolio: Historically, the best time of the year to be invested is between November 1 and April 30, and indicators point to a good season ahead. More on the markets, the gas pump and the papers in the message below.
MARKET MATTERS
We finally felt the 10% correction we’d been waiting for all year, but overall, 3Q was less horror movie and more suspense thriller. To read a general review of market performance during the 3rd Quarter, please click HERE.
A VOLATILE ISSUE
For those who have been plagued with nightmares of the end of the bull market or haunted by memories of 2008, wildly positive days like this one {the S&P is at $2018 at the time of writing} only increase the anxiety. And they aren’t alone. People are anxious to know, where will these markets go? To read a thoughtful piece that explores living with volatility and our emotional responses to it, click HERE.
PUMP IT DOWN
Oil is down, dropping 25% since its high in mid-June. It’s great news for your pocket book~the equivalent of a massive tax cut~and for domestic and international economies that should benefit from the stimulus effect. It’s not so great news for oil producers and commodities prices … and certain related equities. I have been taking profits on Center Coast MLP Focus Fund {CCCNX}, a master-limited partnership involved with pipelines and the transportation of oil.
EARNINGS AHEAD
In other sectors of the market, positive earnings are coming out now. More than 2/3 of companies reporting growth and revenues higher than forecast, setting the stage for a productive quarter ahead. {Keep your eyes on Michael Kors {KORS} and Nike {NIKE} as they head into the holiday shopping season.}
THE REIT WAY
Read any good articles lately? We recently collaborated with our friends and Main St. neighbor at the Arizona Journal of Real Estate and Business to produce a short series of articles on one of our favorite investments, the Real Estate Investment Trust. You can read them HERE and HERE.
As always, it is my pleasure to serve you in achieving your financial goals. I look forward to hearing from you by email {HERE} or by telephone {480-550-8555}.