The stock market is trading lower again today and is now 13% to 20% below the high set back in May of 2015, depending on which index you are measuring. The broadest measure (the All Country World Index) is down about 20%.
However, there is more to investing than just stocks — and not everything is down this year. So let’s look at the full story across all of the major asset classes:
The chart above clearly reflects a theme I have been discussing for a number of years now: risk assets from stocks to junk bonds are all down in value while conservative assets ranging from core bonds to long-dated US Treasuries are rising in value, with gold now added to the rising side of the chart.
Is it possible to protect your wealth from significant declines in the stock market? Absolutely. Look at the right side of the chart and you will see how we are doing it right now.
Every week I speak with prospective clients who are concerned that a stock market decline will jeopardize their financial plans — a scenario I work very hard to protect our clients from. I could not be more pleased with how our portfolios have held up during this recent decline, and I look forward to sharing the results with you as we compile composite performance.