Category: Investment Updates

CapSouth Investment Update

If you’ve paid much attention to the financial markets so far this year, you’re already aware that 2016 has gotten off to a rocky start. Coming on the heels of 2015, a year in which volatility rose and the markets were mostly lower, this has many investors somewhat concerned. I have listened to and read a lot of commentary over the last few weeks from investors and economists whom I respect and will pass along some of the more pertinent information and thoughts in this update. I’ll begin with a review of the returns of various markets, address some of the common concerns that I’m hearing, and finish with our view of some market fundamentals. This is a lot to cover in one update so it will be longer than normal, but hopefully it will be worth your extra time.

CapSouth Investment Update

It has certainly been an interesting couple months for the equity markets. At the market close on August 25th the S&P 500 Index had declined 12.4% from its high point earlier in 2015. Over the following month it experienced some small gains initially only to end up retesting the lows on September 28th. From that point to now there has been a fairly persistent move up so that the S&P 500 is once again within striking range of its high point. Given this recent action, I want to review several items I’ve mentioned previously and then touch on the investment changes we made early in October.

CapSouth Investment Update

Due to the movements of the stock markets over the last few days, we want to proactively address the questions and concerns that you understandably may have. The S&P 500 dropped almost 6% last week with most of the decline coming Thursday & Friday. This morning it was down over 5% shortly after the open (although at the time of writing it was only down around 3%). This has led to many investors quickly becoming uncomfortable with the markets; we’ve talked to several already this morning! Hopefully this update will help to ease any fears and address a few of the more common questions and concerns.