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There was no shortage of clever headlines used throughout the month of October to describe the very difficult month that we experienced with the stock and bond markets.  “Uncertainty Spooks Investors” and  “Markets Remain Scary” are two examples that come to mind.  As I wrote in the last edition of The Heron, we certainly did encounter several scary days for the stock markets and we ended October with the worst month for the S&P 500 index since 2011 as the index was down approximately 7%.

As of now, our opinion on this recent volatility hasn’t changed and we are still looking at this downturn as a fairly normal “correction” that we should expect to experience in the context of the longer-term bull market that is still intact.  The good news is that November is off to a much better start, so far, and the markets reacted very positively to the recent mid-term elections.  Hopefully, this momentum carries into a strong finish for the year.

For more on the midterm elections and the potential impact on the markets, I’ve included a recent video from Raymond James’ Washington Policy Analyst, Ed Mills, and his thoughts on how the markets might react to a divided government.

I’m also including this photo of my two boys giving you their best Hulk Hogan and Captain America poses for Halloween.  I know sometime very, very soon I will no longer be allowed to share pics of them (“Don’t embarrass me, Dad!!”), so I better get them in while I can.

Have a wonderful Thanksgiving holiday with your family and friends and please let us know if there is anything we can do to be of service or assistance.

Todd M. Wike, CFP®
Managing Partner, Potomac Financial Group
2018 RJFS Chairman’s Council Member*

The information contained in this material does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Todd Wike and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor’s results will vary. Past performance does not guarantee future results. Future investment performance cannot be guaranteed, investment yields will fluctuate with market conditions. Chairman’s Council Membership is based on prior fiscal year production. Re-qualification is required annually.