Time for Liftoff?
The volatility that began to show itself in Q2 increased in Q3, as we experienced the first 10% correction in US markets since 2011. All eyes have been on the Federal Reserve, as their decision to defer raising rates (a.k.a. "Liftoff") from essentially 0% due to global concerns centering on China has led to continuing worries about the ultimate impact on global growth.
At ATX Portfolio Advisors, September was the fourth consecutive month of negative returns across all of our models. Our Accountable pricing puts us in your shoes, as we have not charged any advisory fees as a result.
We all look forward to more profitable periods, and there is good news if you pay attention. The reason the Fed is considering raising rates is because of underlying strength in the US Economy. Through most of history, the first Fed move has proven to be a mid-cycle event. If that is the case, the recent volatility should be a good time to take advantage of the uncertainty being priced into the markets for long term investors.
The recent volatility is well within historical norms, and is the price of taking risk to achieve higher long term returns. If the price is too steep (i.e. loss of appetite, no sleep at night), we should review your personal situation and risk tolerance. That's what you pay me for, at least when the market goes up.
Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio.