View from the Chair: Windermere's Market Outlook (September 2016)

Hurry up and wait.  That seems to be the trend in the markets these days.  Most talking heads and members of the media are waiting for some major event to occur and rattle the markets.  Whether it's the Federal Reserve's next interest rate increase or the impending presidential election, it seems the general belief is that something is coming - so hold on.

However, as many wait on the sidelines for the perfect entry point, markets are moving and producing very strong returns on the year (see summary of results below).  As you will see, bond markets are up 4-6% year to date, with US equity markets up in similar fashion (S&P up 6.2%), international markets up 0.7%, and emerging markets up over 14%.  

 

Markets ebb and flow - with a humbling and enticing combination of periods of strong performance and seemingly unforeseen pullbacks. And as a result, we are confident that a pullback will in fact come in the future - whether it be post-rate move, post-election, or post a potential variety of other future events.  However, we are just as confident that attempting to wait for such event and putting investing on hold in the meantime is a no-win situation.  

So, take a seat with us.  Watch your investment strategy play out.  Watch the upcoming events unfold.  And if and when we do see a pullback in the future, we'll take the chance to put any cash balances to work and then we'll carry on along the path - together.