Weekly Commentary, 10/12/15 – 10/16/15
Stocks rose for the third week in row, up nearly 1% for the week. This rise was due in part to encouragement by corporate earnings announcements, which generally exceeded expectations, and more signs that the Federal Reserve may not raise rates until 2016. China also gave investors hope that the worst may be over for global growth concerns, as the Shanghai Index rose 6% for the week and is up 11% for the quarter.
Shorter term price and breadth technical measures continued to improve last week. The major U.S. equity indexes have cleared their respective 50 day moving averages. The S&P 500 Index is now resting at an 8 week high, and has recovered over 50% of the drawdown from the highs set earlier in the year. However, the longer term technical damage inflicted in August and September has not been entirely erased. We don’t know if this recent strength is a counter trend rally in a bear market or the next leg up in a bull market. Unfortunately, the markets do not go straight up or down and no market behaves the same. We make investment decisions based on our models which react to the market we have, not the one we wish we had.
The Stadion Managed Account Risk objectives are managed using a “core/satellite” approach. The core positions will comprise 40-60% of the portfolio and are invested in equity, fixed income and money market instruments with the strategic allocation becoming more risk averse as the risk tolerance of each fund changes. In allocating the objective’s satellite assets the remaining 40-60% of each portfolio, Stadion uses a proprietary, rules based weight of the evidence model. The portfolios remain invested per the risk objective.
Past performance is no guarantee of future results. Investments are subject to risk, and any of Stadion’s investment strategies may lose money. The investment strategies presented are not appropriate for every investor and financial advisors should review the terms and conditions and risks involved. Stadion’s actively managed portfolios may underperform during bull markets. Some information contained herein was prepared by or obtained from sources that Stadion believes to be reliable. There is no assurance that any of the target prices or other forward-looking statements mentioned will be attained. Any market prices are only indications of market values and are subject to change. The S&P 500 Index is the Standard & Poor’s Composite Index of 500 stocks and is a widely recognized, unmanaged index of common stock price. The Shanghai Stock Exchange Composite (SHCOMP) Index is a capitalization-weighted index that tracks the daily price performance of all A-shares and B-shares listed on the Shanghai Stock Exchange. It is not possible to invest directly in indexes (like the S&P 500) which are unmanaged and do not incur fees and charges. Any references to specific securities or market indexes are for informational purposes only. They are not intended as specific investment advice and should not be relied on for making investment decisions.
Past Performance is no guarantee of future results. Investments are subject to risk, and any of Stadion's investment strategies may lose money.