Market Commentary: September 13, 2016

September 14th, 2016 by Anchor Bay Capital's Investment Team


As I write this Tuesday afternoon, U.S. stock indexes are displaying more of their recent volatility, finishing down for the 2nd day out of the last 3. Last Friday, the Dow Jones Industrial Average retreated, mostly in response to the European Central Bank’s decision to maintain its current monetary policy instead of increasing its stimulus plans as the market expected. The retreat was followed on Monday with the Dow finishing up.  Now, it seems investors are attempting to evaluate the effects of dropping oil prices and the latest clues to actions from The Fed.  These include comments made by Federal Reserve members alluding to the probability that the central bank will raise rates at its meeting later this month or in December.  While the timing of the next rate hike and other factors, such as the latest polls of the U.S. presidential election continue to have investor’s attention, I expect additional pressure on stocks may continue.

Please remember that success in the market does not depend upon predicting the future. Volatility is more of a result of short-sightedness, fear and greed than on the actual underlying economic or financial event. Long-term investment decisions should not be based upon emotions. We have prepared for fluctuations in the markets through our asset allocation strategies of owning the right mix of stocks and bonds in your portfolio.  If you have reviewed your accounts recently in light of your long-term financial goals, you will likely find it easier to look past the noise and avoid worrying about the day-to-day nuances of the market.

We are here to help.  We have tools that allow you to plan for your life scenarios using varying market conditions and evaluate the probability of your portfolio achieving your goals.  We will continue to watch our indicators and maintain our portfolio strategy; if you would like to discuss how your portfolio is aligned with your goals, please contact us anytime.  We are always happy to hear from you.

Scott Spiering, Chief Portfolio Manager

Anchor Bay Capital, Inc.