Q2 2017 Investment Performance

With six months gone in 2017, how are your investments doing?  Did the stock market’s rising tide lift your boat?  Or have poorly performing investments left you beached on dry land?

HOW DID STOCK MARKETS PERFORM IN THE 2nd QUARTER?

Strong global markets

3.02%              US Stock Market

5.63%              International Stocks

6.27%              Emerging Markets

• Large company stocks outperformed Small companies
• Growth stocks outperformed Value stocks
• Top Markets: Austria to Greece (+18-34%)

WHAT ABOUT MORE CONSERVATIVE INVESTMENTS SUCH AS BONDS?

Humble

1.45%              US Bond Market

0.60%              Foreign Bond Market

• Bond rates 2-3%
• CDs <1-2%

AND WHAT ABOUT ALTERNATIVE INVESTMENTS SUCH AS REAL ESTATE, OIL, OR GOLD?

Subdued to negative

1.64%              US REITs

-10.68%           Oil

-0.99%             Gold

IS THE STOCK MARKET DUE FOR A CORRECTION? WHAT SHOULD INVESTORS DO NEXT?

• Stock prices are “fully valued” not cheap but not wildly over-priced.  Trending toward getting pricey.
• There are no visible red flags.  Slow growth.
• Prepare NOW for the next market correction:
  • Keep cash on hand for upcoming expenses
  • Protect 3-5 years of expected income needs
  • Gut check your risk tolerance.  Don’t sell AFTER a correction
  • Diversify

This segment was originally aired on WBIR on 7/9/17.