Quick Comment – The S&P 500 Is NOT the Real Story

Market headlines since the shocking Trump presidential win have shown the S&P 500 and the Dow hitting all-time highs.  True enough, but that’s not the real market story that investors need to know.  Here’s the broad market performance since Tuesday’s market close*:

U.S. Stock Market (Wilshire 5000): +1.11%, +$155 Billion
International Stock Market (MSCI-ex U.S.): -2.62%, -$586.9 Billion
Global Real Estate Market: (Dow Jones Global Real Estate Index): -3.04%, –
$827.2 Billion

Global Total Bond Market: (Bank of America’s Global Broad Market Index): -2.31%. $1.14 Trillion

So while U.S. stocks are up marginally, it really reflects a re-allocation of assets from the foreign markets back to the U.S. This is consistent with what we’d expect given President-elect Trump’s strong campaign promise to strengthen the U.S. economy first. 

In a diversified portfolio, it’s typical that U.S. exposure might be around 50% or so, with the rest being international, fixed income, real estate, etc. So even though the U.S. markets have been rising a bit, the remainder of the portfolio (even conservative fixed income investments) have been under a bit of pressure.

More commentary coming early next week, but know that our neutral investment posture remains intact.

*Source: Google Finance

 

By | 2016-11-11T13:21:04+00:00 November 11th, 2016|Client|Comments Off on Quick Comment – The S&P 500 Is NOT the Real Story

About the Author:

Mark’s commitment to objective, independent wealth management led him to establish The Appleton Group LLC in April of 2002. With over 19 years of experience in the financial services industry, Mark serves as portfolio manager for our private client group, and co-manages all assets held in our suite of portfolio offerings. His responsibilities include risk analysis, asset allocation, market research, and institutional client development. Mark also serves as both Principal and CEO of The Appleton Group LLC. He earned his Accredited Investment Fiduciary (AIF) designation in 2016