Seriously, even as we experience some turmoil in the market, we wanted to wish all of you a very happy Thanksgiving. We should enjoy our holiday with family and friends and resist being distracted by short term issues. We’ve seen this before, and we know the difference between things we can’t control (like short term market fluctuations), and things that really matter – like family and special times together.
As we have discussed before, market declines occur from time to time, often rapidly and always unpredictably, and our disciplined process is designed to help us steer through these potentially difficult moments. The good news for disciplined investors is that the parts of the markets that were trailing US growth stocks are largely outperforming them now; diversification is much appreciated at times like these. For example, while the Russell 1000 Growth Index (large cap US growth stocks) fell about 2.3% last week, the Russell 1000 Value Index was down less than 1%. Emerging markets stocks (in US dollars) rose 1%, international equities fell about 1.4%, and bonds appreciated – taxable bonds +0.5% and municipal bonds +0.3%.  As usual, the headlines do not tell the whole story.
This morning I did hear something good on the radio, between comments about the falling prices of the so-called FAANG  stocks. The idea was to make a list of 10 things for which to be grateful. Not a new idea, but I needed the reminder, and we are passing it along in case you need the reminder too! We hope you all have great things in your lives that matter more than the day to day events we experience.
We would add that despite the recent downturn in equities, the longer-term returns are still very good, e.g., the S&P 500 Index is up 8.2% for one year and 12.8% (annualized compound return) for three years through last Friday.  We continue to believe the big picture and a disciplined process are what matter in the end.
We wish you and your families all the best for the holiday.
 Emerging markets stocks are represented by MSCI Emerging Markets NR USD Index, international equities are represented by MSCI EAFE NR USD Index, taxable bonds are represented by BBgBarc US Aggregate Bond TR USD Index and municipal bonds are represented by BBgBarc Municipal 1-10Y Blend 1-12Y TR Index. Source of data: Morningstar, Inc.
 Facebook, Apple, Amazon, Netflix and Google (aka Alphabet) 3 Source of data: Morningstar, Inc.
 Source of data: Morningstar, Inc.
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