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Does Your Asset Allocation Align With Your Financial Goals?
From:
Greg Womack -- Certified Financial Planner Greg Womack -- Certified Financial Planner
Oklahoma City , OK
Tuesday, September 15, 2020

 

Last week, the Nasdaq Composite Index set another record.

So far, 2020 has been memorable for many reasons, not the least of which is the incredible speed at which some events have been occurring in financial markets. This year, we've experienced:

  • The end of the longest U.S. stock bull market in history
  • A global stock market crash
  • The shortest U.S. stock bear market in history
  • Multiple record highs for major U.S. stock indices

Last week, we witnessed the swiftest correction on record as the Nasdaq fell by 10 percent in just three days. By the end of the week, the Index had recouped some losses and finished down 4.1 percent. The Standard & Poor's 500 Index and Dow Jones Industrial Average also finished the week lower.

It would be gratifying if the recent drop in share price steadied U.S. stock markets. However, we are likely to see stocks remain volatile through the end of 2020. The Economist explained:

"Because of the influential role of turbocharged retail investment, prices can be expected to remain choppy. Moreover, the market is entering a period where typical COVID-19-related volatility may be exacerbated by the twists and turns of America's presidential election.

"That said, much of the tech recovery from the lows in March was rooted in fundamental shifts, like policy interventions, or pandemic-prompted changes to consumer behavior, such as online shopping, that have helped firms…Even if the giddy obsession with tech firms exhibited during the summer fades, there may be little reason for investors to throw in the beach towel yet."

This is a good time to take a gut check and make sure your asset allocation aligns with your financial goals and your response to market volatility.

 

 

Data as of 9/11/20

1-Week

Y-T-D

1-Year

3-Year

5-Year

10-Year

Standard & Poor's 500 (Domestic Stocks)

-2.6%

3.4%

11.3%

10.3%

11.2%

11.5%

Dow Jones Global ex-U.S.

0.2

-5.0

2.7

-0.5

3.7

2.2

10-year Treasury Note (Yield Only)

0.7

NA

1.7

2.1

2.2

2.7

Gold (per ounce)

1.1

27.9

30.6

13.4

11.7

4.6

Bloomberg Commodity Index

-1.2

-11.5

-8.5

-5.5

-4.3

-6.3

S&P 500, Dow Jones Global ex-US, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods. Sources: Yahoo! Finance, MarketWatch, djindexes.com, London Bullion Market Association. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.

 

Best regards,

Womack Investment Advisers, Inc.

  

WOMACK INVESTMENT ADVISERS, INC.

Oklahoma / Main Office: 1366 E. 15th Street - Edmond, OK  73013

California Office: 4660 La Jolla Village Dr., Ste. 100 - San Diego, CA 92122

Phone (405) 340-1717 - Toll Free (877) 340-1717
News Media Interview Contact
Name: Greg Womack, CFP
Title: President
Group: Womack Investment Advisers
Dateline: Edmond, OK United States
Direct Phone: 405-340-1717
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