The see-saw that has been the US and Global stock markets continued this month, with a very volatile September seeing a range of negative numbers. From the US large-cap weighted S&P¹ 500 down over 1.5%² to world stock MSCI EAFE index down over 3.5% to the small-cap weighted Russell 2000 index down over 6%!

To recap the summer so far, May and June: Positive. July: Negative. August: Positive. September: Negative.

Now, we enter October, generally the most treacherous month, because IF a large downturn was to happen, October, historically, is the month it occurs.

In conjunction with this, the Fed's QE program should officially be ending this next month. This is of interest because, over the last 5 years, each time a QE program has stopped, the market has pulled back.

On the other side of the spectrum, Mario Draghi and the ECB have announced a QE program of their own in Europe. We mentioned last month that while we feel the US is in the late innings of their ballgame, Europe may be in the 4th inning or so. Valuations are attractive, but that does not mean Europe or Asia are not susceptible to a US pullback or the current geopolitical tensions and fears (ISIS, riots in Hong Kong.).

Patience is a virtue when it comes to investing, and it has certainly been tested with the Fed's interference. Putting together a strategy for a lifetime is not a sprint, but a marathon. And while we do think there may be a bit more upside in the markets, we also think valuations are pretty high, and some sort of pullback is much needed. Whether or not October continues September's slide is anyone's guess, but we currently view a decent sized pullback as more a buying opportunity at better prices than the beginning of a dreaded bear market at this time. 

Visit our website to learn more.

For more information about your portfolio performance, please refer to your personalized statements or contact us. Regulatory restrictions prevent us from reporting personalized performance data in this newsletter. See below for important disclosures. 

This publication is proprietary and limited to the sole use of Walter J. Reyna, Inc. clients.  Client portfolios are designed for the moderate investor but are actively managed on a monthly basis and may not follow traditional risk adjusted asset allocation models. Walter J. Reyna, Inc. maintains full discretion over said accounts and manages as deemed necessary. Clients with questions about the fees associated with their discretionary advisory account should refer to their advisory agreement. The information contained herein is for illustration purposes only. It is not necessarily complete, does not include client directed investments, and its accuracy is not guaranteed by Walter J. Reyna, Inc.  All clients should reference their periodic statements for accuracy. All clients needing additional information about holdings in the portfolio, including the objectives, risks, asset class and costs associated should refer to their respective prospectus. If you have received this communication in error, please notify us immediately by e-mail or telephone.  Neither the information, nor any opinion expressed constitutes a solicitation nor investment advice, for the purchase of any future security referred to in the Advisory Newsletter.  Investments offered through Registered Representatives of Lincoln Financial  Securities Corporation, member SIPC.  Lincoln Financial Securities Corporation and Walter J. Reyna, Inc. are not affiliated.