3rd Quarter Market Commentary from Tampa Bay's Woman of the Year in Financial Services
What a difference a year makes!Still fresh in our memories, this quarter marked the anniversary of the start of the economic turbulence of the past year, when the financial world as we know it suffered a tremendous blow.On this anniversary, I believe we are seeing evidence of the equity markets’ resilience.
Global equity markets have continued their recovery through this quarter, and many have recouped losses from the start of the year.The market rally that began in mid-March continued strongly through the end of the third quarter, as the S&P 500 gained 58.25% since the low on March 9th and 15.61% over the three months ending September 30th, and momentum remains positive for the equity markets.And while housing and employment are still negative, they seem to be stabilizing as the economic backdrop continues to improve.1
Investors who remained on the sidelines may be frustrated, having missed an opportunity to participate in one of the biggest rallies in market history.Perhaps one of the most valuable lessons to be learned from this experience?Perseverance.For investors with the fortitude to look past the short-term uncertainty and focus on their long-term investment strategy, the current market environment may offer plenty of opportunities.
In a poll by Bloomberg News, economists lifted their estimates for the third quarter GDP by 1.2%1 compared with July, which would be the biggest boost in surveys since May 2003.These projections followed better-than-expected reports in manufacturing, employment and home construction.1Consumer spending is expected to rise about 1.5% from July to December.2
Only time will tell, but I believe cautious optimism is justified at this time.The task at hand – to maintain a disciplined, dynamic approach to your portfolio’s allocation in an attempt to capture returns.That is why I recommend that we discuss Legend Advisory Corporation’s professionally managed account.If you have questions, or would like to discuss the current markets or your portfolio, please don’t hesitate to contact me by phone or email.
Sincerely,
Christine B. Cooper, MS, CLTC
Financial Advisor
*Source: Bloomberg.Returns include reinvestment of dividends.
2nd Quarter 2009 Market Commentary from Cooper Financial Services
As the second quarter of 2009 comes to an end, several signs of improvement have surfaced in the financial markets. Since mid-March, the markets have rallied significantly; in particular, since the market low on March 9th through June 30th, the Dow Jones Industrial Average and the S&P 500 performed at a rate of 30% and 37% respectively.1 I continue to believe the US economy is resilient and, while the recent market rally may not represent a market recovery, I share the expectation of many in the industry for continued improvement as we move to the latter part of 2009. During the quarter, it appears that we may have experienced a resurgence of consumer confidence.Many Americans are making good strides towards financial stability by deleveraging their credit and increasing their savings rate.As a matter of fact, according to the Bureau of Economic Analysis, the personal savings rate was up to 6.9 percent in May (a 15 year high). Further, the Investment Company Institute reports that more than $200 billion has been pulled from money market funds since March 11 – just two days after the S&P 500 stock index started its nearly 40% ascent through June 8th.* It is believed that much of that move has been driven by retail investors.
As the search begins for the “right” re-entry point back into the market, I offer a word of caution: history has shown that trying to pick the exact right time to invest can be next to impossible. That said, it appears that many investors may not necessarily be risk-averse, but rather loss-averse. While it is tempting to make decisions based on your reaction to a particular market cycle, risking nothing today may mean risking buying power and opportunities down the road.
Focus, clarity of thought and planning are needed more than ever when adhering to an asset allocation plan.If you have specific concerns or questions, please feel free to contact me. As always, I appreciate your trust.
Sincerely,
Christine B. Cooper, MS, CLTC
Registered Representative
1Source:Bloomberg * Past performance is not indicative of future returns. The investment return and principal value of an investment will fluctuate, so that investor’s shares, when sold, may be worth more or less than their original cost.
WHAT’S HAPPENING IN THE GLOBAL EQUITY MARKETS?
For an interesting discussion on the latest trends in the global equity markets, we recommend reading the latest press release from the Legend Advisory Corporation. Just click on the link below to read the press release:
There are over 16,000 mutual funds in the Morningstar database – you can analyze these yourself if you have time. But, if you are interested in a more intelligent way to repair and manage your investment portfolio, Cooper Financial Services can help you take advantage of the services offered by the Legend Advisory Corporation and their computer-based market forecasting technology. Contact us!
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