October brought major gains in stocks before the midterms. The average return of the major stock indices was 20% for the month. Stocks are again at the level they were last June and in March 2021. The bond index and NASDAQ were -2.1% and -2.5% respectively in October. Positive market sectors include Energy, IT, REITs, Health Care, international stocks, and 3-month Treasury Bills. Major U.S. stock indices averaged -15% Y-T-D and -12% from a year ago. Our diversified (stocks and bonds) portfolio average net-of-fees return for October is 4.1%, Y-T-D -15.7%, and 1 year -14.5%, running ahead of its benchmark index. Your October report is enclosed.
Current inflation and the Federal Reserve moves continue to be a major influence on stocks and bonds. There is still concern over a tip to job loss and recession next year. The current volatility may require investors to hang on for the time being. Typically, the year following the midterms is good overall for stocks.
TD Ameritrade and Schwab have set a target date of next Labor Day to move client accounts to Schwab. Accounts will receive a new 8-digit number at Schwab, and they offer that there will be a smooth and paperless (no new forms) transition. We’ll keep you posted as we learn more about this.
A second summer arrives this week, following the first frost. A gift in November for sure. Tucking the delight away with memories of other summer joys to warm our colorless days ahead – a way to have our cake and eat it, too.