Thoughts {10.01.15-Performance}

Markets rallied yesterday but that could stop this year's third quarter for being the worst in four years.  For the record the S&P 500 lost 6.9% and the Nasdaq lost 7.4%.  S&P was down 2.6% in September and the Nasdaq lost 3.3%.    S&P 500 has declined about 7% for the year and is down a bit over 10% from highs set back in late May.  

 

From USA Today here's a few other facts about the quarter.  

-First 10% correction since 2011.  S&P 500 had gone 1,326 calendar days without hitting a correction.  

-Most stocks have been in a stealth bear market for quite some time.  As of Monday's close, 253 stocks or more than half the companies in the index were down more than 20% from their highs.

-Foreign markets were crushed.  For example China was down 29% in the quarter and Germany lost nearly 12%.

Three worst performing sectors in the quarter per Stockcharts.com were Energy {-11.04%},  Materials {-10.11%} and Healthcare {-3.71%}.  Three best were Utilities {+12.34}, Consumer Staples {+6.71%} Consumer Discretionary {+4.40%},  all defensive sectors of the market. 

We are now entering the most positive period of the calendar for stocks so it will be interesting to see if we get a bid for equities and if so at what level will that support materialize.  Back early next week.

*Long ETFs related to the S&P 500 and the Nasdaq in client and personal accounts.  In addition we have positions related to China, Germany, Healthcare and Materials.  Also note that all of these sectors are components of the S&P 500 as well.  Please note these positions can change at any time without notice.