Overview

Since October 1, the market has declined approximately 8% off its all-time highs. Our portfolio management team has provided three (3) key elements to the recent correction and what it possibly means moving forward.

1. Putting the recent pullback into perspective

The VIX Index (~ fear Index) is at its highest point over the past two years and makes incursions into this territory about once per quarter. In each instance, the market pulled back before resuming its ascent once the fear subsided and the VIX came back to a normal level.

"Conviction is worthless unless it is converted into conduct." - Thomas Carlyle

After a relatively volatile quarter, equities (S&P 500) ended with a 1.0% gain. A sell-off in July was quickly erased with an almost 4% run in August. September finished -1.5%, mostly on the angst of the global economic recovery and geopolitical tensions. Despite the headlines, the S&P 500 remains positive at +7.8% YTD and the All Country World Index (ACWI) at +3.7% YTD.