Annual Returns and Intra-year Declines

CFS: Comprehen… |

March 2014

Dear Client and Fellow Investor,

With the stock market near all time highs, there is talk about the sustainability of this run up.  It is important to always take a step back and keep things in perspective.  When building an investment strategy, by definition, you should consider protection first and promotion of growth second. As the risk appetite begins to increase keep the chart below in mind.  The markets have generated an intra-year drop on average of 14.4% - this correction can happen in positive years and negative years.  The big picture needs to focus on keeping your strategy in check and avoiding speculation - our process involves staying balanced and rebalancing.  At the end of the year riding all the highs of the market will not mean a much if you give it all back.

If you have any questions or would like to discuss your portfolio, feel free to contact me.  Remember, you can schedule a time to speak with me by clicking on the button “Schedule a Phone Call” located below. 

Thank you,
Mark E. Engberg, CFP® 

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