October markets rebounded from the losses of the summer in a spectacular way. While still below early summer market levels October brought stock prices back up to last year-end values. The major indices rose over 9% in October but remain basically flat for 2015.
While economic indicators remain fairly steady there is little cause for concern over a market crash. The aging bull market is burdened by high stock values that promise lower returns. Once something makes stock prices fall significantly, they will be low enough to expect growth and better returns from stocks. The market operates on these cycles of building and falling stock prices. The market drop of the summer may be all the correction we have for now. A larger correction is needed to bring prices down enough to offer real growth going forward. International markets offer more growth potential at this time and we continue to explore options to add returns and diversification to your portfolios while minimizing overall volatility.
Again October delivered a month of spectacular color drawing the growing season to a close. Summer’s leaves now blanket garden beds against the cold – protection for the long sleep and next year’s renewal. Yes, cold comes next. It is New England after all. Some ski or snowmobile; others escape for a while. There are many ways to adapt and adversity stimulates creativity. Just not too much adversity.