None of our clients were happy with how their investment portfolios performed during August and September, as we all saw losses in the neighborhood of 5-7% for those two months. Well, I'm here to say that we noticed your displeasure and so we're happy to announce that returns in October were in the neighborhood of 4-6% up.
OK, I apologize for the sarcasm (not really). The truth remains that after financial markets push asset prices down (i.e. market correction), those same financial markets react to those lower asset prices by pushing the prices back up (i.e. market recovery).
If we've learned anything after almost 20 years in this business, it's that these corrections and recoveries are impossible to predict accurately and consistently over time, and even a small mistake in timing can have big, irreversible consequences. And believe me, we'd love to be able to accomplish such prescient market timing.
On another note, congress has made a somewhat significant change to Social Security benefits. They have eliminated the so called "file and suspend" strategy. This was an optional strategy that allowed some married people in the know to collect a greater lifetime benefit than those filing for standard benefits.
The funny part is that is economist Larry Kotlikoff recently wrote a book about maximizing Social Security benefits (yes, I read the book).
He loves the "file and suspend" loophole and, in fact, he even started a business to help people take advantage of the various loopholes that have been identified. Unfortunately I think that he brought so much attention to "file and suspend", that congress had no choice but to close the loophole. Thanks Larry!