INDIVIDU AL n TALK MARKET


PEP ON THE


A S. Drew


Kavanaugh, II CFP®


VP Wealth Management


As we round the turn and head into the home stretch of 2014, let’s review the market scorecard. By the end of the third quarter, the closely followed S&P500 gained an impressive 8.34%, while the Barclays U.S. Aggregate Bond index posted a 4.1% gain. However, not all the indices were so rosy. International and emerging markets posted returns of -1.38% and 2.43%, respectively. Te Russell 2000 (which encompasses the smaller U.S. capitalized companies) posted a loss of over 4%. With such disparate returns, what is an investor to do?


Above all, don’t abandon your game plan. Sticking with a well- diversified, balanced portfolio isn’t always easy. You are likely to have both winners and losers in your portfolio at any given time. However, years of study in the area of behavioral finance show that most individual investors allow their emotions, not logic, to dictate their investment decisions at precisely the wrong times. Te adage of buying low and selling high is the goal, but many investors do the exact opposite and severely impact their financial goals.


We, at Ambassador, continue to monitor the economy, financial markets and your portfolios. Whether the news is focused on a struggling European economy, a transitioning economy in China, or other changes here and abroad, we evaluate each event’s relevance and allocate accordingly. Finding undervalued opportunities, while trimming overvalued positions is the name of the game, and we hope to continue to coach you through it.


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