3rd Quarter Market Review

By Steven Smith | Current Newsletter

Oct 15

Our friends at Dimensional Fund Advisors graciously provide us with a robust and detailed review of the world capital market performance. For readers who want to look more deeply under the hood, this is a comprehensive, yet accessible, review.

Attached is their Quarterly Market Review. The report includes: a global overview, timeline of events, and the returns of asset classes in both US and international markets. Also included are returns for globally diversified index portfolios for a number of different global stock/bond mixes, highlighting the benefits of diversification.

On the last page is discussion of how to incorporate and manage the Emerging Markets asset class in a portfolio. Historically, emerging markets have been both a good diversifier (with a relatively low correlation to US equities) and have had higher risk premiums. But they come with much higher volatility, reflecting the typical risks (political, corporate governance, etc.) of less developed countries. We recommend seasoning portfolios with small doses of emerging markets, the way you would with chili peppers; just enough to kick it up a notch, but not so much to choke on.


Ready to take the next step?

whats your risk number

Take our free risk assessment quiz to determine your readiness on the path to Financial Independence.

Self Guided Path

Get your Risk Number to pinpoint how much risk you want, how much risk you need and how much risk you actually have in your portfolio. Then build on this process to craft a personalized plan.
Steve Smith, Financial Planner

Steve Smith, Principal Right Path Investments

Fully Guided Path

Steve Smith, Principal of Right Path Investments is here to guide you with preparations to take your next step. If you're ready to take that step, schedule some time for a one on one with Steve today.

Contact Steve

%d bloggers like this: