August 24th, 2015
John Ferguson, Principal
Through Friday, August 21st, a diversified 60/40 portfolio (Dimensional Global Allocation 60/40 – DGSIX) is down 2.14% on the year1. The market may be reacting to the Chinese currency devaluation and concerns about the Fed raising interest rates.
While the market may decline 10% of more from highs in May, this is nothing unusual. During the years we have been in business, we have seen 18 such declines and subsequently 18 recoveries2. We are not asleep at the wheel and our diversified approach to your portfolios has held us in good stead throughout the years.
If you have any questions or concerns, please don’t hesitate to give us a call.
1Dimensional Fund Advisors, performance as of 8/21/2015.
2Yardeni, Edward. “Market Briefing: S&P 500 Bull & Bear Corrections”, Yardeni Research, Inc. August 21, 2015
Investment advisory services offered through Ferguson-Johnson Wealth Management, a registered investment adviser.
This newsletter contains general information that may not be suitable for everyone. The information contained herein should not be construed as personalized investment advice. Past performance is no guarantee of future results. There is no guarantee that the views and opinions expressed in this newsletter will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security.
Indices are unmanaged and investors cannot invest directly in an index. Unless otherwise noted, performance of indices do not account for any fees, commissions or other expenses that would be incurred. Returns do not include reinvested dividends.
The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is a market value weighted index with each stock’s weight in the index proportionate to its market value.
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Neither Asset Allocation nor Diversification guarantee a profit or protect against a loss in a declining market. They are methods used to help manage investment risk.