We have seen some volatility in the market over the last few weeks. Some of the newscasters on TV are sensationalizing the recent downturn; however, we are keeping it in perspective. The volatility can last for a period of time, however, our focus remains on the ultimate objectives of our clients. The US economy is in good shape with the revised second quarter GDP of 3.7%. Central bank policy remains very accommodating and the declining commodity prices are benefiting all consumers.
We don’t believe in drastically altering portfolio allocations in response to market movements, however, we are reviewing your investment positions and will proactively make changes as needed. We are mindful that each client’s allocation is based on goals, time horizon and risk tolerance. We are happy to report that as we review our client’s portfolios we are finding that their accounts have gone down much less than the markets.
Lessons learned from previous downturns are, we keep our heads while others are losing theirs. We hope you enjoy the last few weeks of the summer and please reach out to us if you have any questions.