As the warmth of summer gives way to the beauty of autumn, our Lakeside portfolio management team felt this was a good time to reflect on the current investment environment. As of the end of August 2017, this has been a solid year for investors thus far. Global equity markets have posted strong returns since the beginning of the year, and the U.S. bond market is also positive for the year.
Nevertheless, mainstream news outlets (as expected) continue to bombard investors with headlines relating to U.S. policy uncertainty, geopolitical risk, and weather-related events. YES, these are concerns, but they have generally not been the best indicators for long-term investors. These headlines that grab our attention are worth paying attention to, but generally are not accurate signals for investors to follow. Co-existing with these news items are indications that the global economy has been improving and global corporate profits are finally rising at a respectable pace. Thus, currently improving economic fundamentals are trumping (no pun intended) a challenging political environment.
Future market expectations are dependent upon leading indicators, confidence, jobs, and corporate profits. Though equity markets have been relatively calm this past year as the equity bull market has been aging, one never knows when this will come to an end.
We continue to pay attention to market developments while maintaining our structured and disciplined investment approach. Our focus is on the long-term plan. Our philosophy is not to try to time the markets or predict the future but to position and guide your portfolio appropriately towards reaching your future financial goals.
Make sure to contact your financial advisor if you have questions about the changing markets.