August 2015 Monthly Summary

201508 MktData

The More Things Change…

August is over and we have moved into our new location!  Stop by for a visit or make sure to check us out at the Open House on October 6, from 2pm to 6pm.  As I write this summary, I still have a few boxes to unpack, but we are really excited about our new office and how it will allow us to better serve our clients.

Change is a struggle for most of us, but we realized that making the move was the right choice for the long term.  The markets had a big change last month as well, and it wasn’t a good one.  The S&P 500 was down over 6% in August, making it the worst performing month since May 2012 and our first official stock correction since 2011. Not all change is good.201508MktChart
Volatility is one of those necessary evils.  The natural relationship between risk and reward is what makes the stock market such a great performing long term investment.  We don’t make allocation moves based on fear, but focus on the fundamentals.  The chart to the right shows the various spikes in volatility over the last couple years along with the headlines that surrounded the panic.  This current volatility spike isn’t much different than the others in regards to the “reasoning”, but really just a difference in magnitude of the drawdown.

Looking at the fundamentals of the market and the economy, we still see positives.  GDP for the second quarter was just revised up to 3.7% and PE Ratios for the S&P 500 are below the 15 year historical average. Chinese economic slowdowns, Fed actions, European recessions, presidential elections all contribute to the movements of the market, but the intermediate and long term directions of the market continue to be rooted in the fundamentals.


The mood as we enter September is depressing, and this correction may take months to reconcile.  However, we still have the attitude that America 201508 Barometerwill survive, so if you have the investment time horizon and appetite for risk, you should look for opportunities in times when fear is in abundance.

1Thomson Financial

2 JP Morgan Weekly Insights



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