The best way to describe the stock markets so far this year is “Yo-Yo”…
The US stock market took off like a rocket in January, turned down in February, and has been going up and down ever since.
In addition, over the past couple of years stock markets all around the world are acting like a Yo-Yo as well.
European stocks are down or flat, while the United States S&P was up, at the same time the Asian markets have been down considerably… and yet bond rates are rising up… its has been a “Yo-Yo” period for sure.
For those of us with a well balanced portfolio, holding stocks of the US, Europe and Asia as well as bonds, you will see a teeter-totter or balancing effect mitigating super “high” highs and “low” lows as much as possible. This diversification provides stability and risk management to our portfolios as a whole.
While October statements are down from the January highs of this year, by year's end we should be back up again.