In light of the past week activity in the market, we wanted to share a short update. Amazingly 6 trading days ago the U.S. Markets were trading at all-time highs. With today’s selloff, the S&P 500 is now down approximately 5% from those all-time highs. Many of the salient points today were covered in our latest monthly market update, which can be found here. The largest issue seems to be stemming from the relative strength of the U.S. economy, which is causing the Fed to raise rates and driving strength in the U.S. dollar. The result has been significant outperformance of the U.S. equity markets relative to the rest of the world.
Our position is to focus on the long-term, global diversification and taking an appropriate level of risk. As you look at your accounts, you will see the equity portion lower. However, as the selloff in equities intensified, we saw bonds go up in price. So, the conservative portion of your allocation, fixed income, was essentially flat today and dampened the volatility of the equity sell-off. The sell-off has been sharp and quick, but certainly not out of historical expectations. We will continue to monitor markets and adjust as necessary. Please feel free to contact your advisor with additional questions.
Kevin M. Churchill, CFA, CFP®
Chief Investment Officer
Scottsdale/Phoenix Area: (480) 990-3300
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Salt Lake City Area: (801) 899-7600