The Fall season is underway and we hope everyone is enjoying this beautiful weather. Fall is a popular season due to the mild temperatures and nature’s beautiful colors, but also it’s a good reminder of the cyclical nature of things.  While it is a time of change, it is also a time of renewal.  My colleague Destin Tompkins offers some great insight on where we are on the long-term market view below.

The Story Behind the Headlines…

As we reflect on the recent performance of the financial markets, I am struck by how uneven the performance has been across most major asset classes. While the S&P 500 Index returned 2.5% for the quarter and much of the commentary in the financial media centered on the continuation of a strong “bull market” run, the story was much different in most other segments of the market. Specifically, the bond market was essentially flat, while US mid/small cap stocks, international stocks, real estate, and commodities all noticeably declined. This led to softer performance for those with diversified portfolios.

The recent environment provides a healthy opportunity to reflect on our investment philosophy and consider its merits. This starts with considering specific client goals and draws on decades of Nobel Prize winning academic research to deliver an evidence-based approach to investing, focusing on things we CAN control, namely diversifying portfolios, reducing expenses, minimizing taxes, and staying disciplined. This strategy has consistently produced superior returns in the past, and we believe will continue to do so into the future.

In line with this, I have included an excerpt from a recent article (by Weston Wellington of Dimensional Funds) that supports this approach: “For decades, financial researchers have explored dozens of quantitative indicators as well as various measures of investor sentiment in an effort to discover the ones with predictive value. The record of professional money managers over the past 50 years offers compelling evidence that this effort has failed.  Searching for the key to outwitting other investors may be fun for those with a sense of adventure and time on their hands. For those seeking the highest probability of a successful investment experience, maintaining a consistent allocation strategy is likely to be the sounder choice.”

Speaking of sound choices…

Recently I was invited down to New Orleans for the First Protective Estate Planning Strategies conference, and along with some excellent speakers were some of the best meals you can find in our great land – truly fantastic!

At E|Financial Alliance our mission is to help in some way to give you peace and comfort with a plan for success.  I hope you get some time to spend with friends and loved ones, ignore popular culture’s “food guilt”, and instead eat, drink and be well. Thank you for allowing us to partner with you.

Mitch & Destin