3
5
1
8
2
6
7
4

Opus News & Insights

Long-Awaited Correction Arrives During Third Quarter
Thursday, October 15, 2015

Quick Look

  • The first market correction in four years highlighted a forgettable quarter for investors, as the S&P 500 dropped 6.4% to post its worst return in the last sixteen quarters. Losses were even more pronounced in other equity indices, as the Russell 2000 Index and MSCI EAFE International Index both posted double-digit declines. Emerging market stocks slumped 18%.
  • Corrections occur more often than many realize. In fact, since 1928, we have averaged more than one correction every year. Obviously, nobody enjoys periods of losing money, but 10% corrections are invariably a natural part of long-term investing.
  • Thanks to this pullback, investors are once again presented with the atypical scenario in which there is more income to be gained from stocks than bonds, at least if comparing the yield of the S&P 500 Index to the yield on the 10-Year Treasury.
  • We continue to believe that once the Fed does finally raise rates that further rate hikes will be at a subdued pace. Furthermore, a 25 basis point increase may actually build investor confidence as opposed to being viewed as a negative event.
  • Acknowledging the short-term volatility, we recommend that long-term investors practice patience. During this downturn, we have taken the opportunity to harvest tax losses, invest excess cash and, where appropriate, rebalance portfolios for clients.

Download Full PDFopus capital management





 
 
Subscribe To Our Blog

Blog Categories

  • Opus Insights
  • WM Newsletters
    • 04/10/2017 - Lately, All Ladders
    • 01/11/2017 - New Regime, Newfound Optimism
    • 10/07/2016 - The Waiting Game
    • 07/08/2016 - Whither Brexit, Withering Rate
    • 06/24/2016 - The Brexit Vote
    • 04/15/2016 - In Like a Lion (or Should We S
    • 01/15/2016 - Running in Place in 2015
    • 10/15/2015 - Long-Awaited Correction Arrive
    • 07/13/2015 - Equity Markets Flat, Bonds Fal
    • 04/13/2015 - Review of First Quarter 2015
    • 02/17/2015 - Divergent Paths: Large U.S. St
         
WHAT'S HAPPENING

Walk to Cure Arthritis
  Join us for the 2017 Walk to Cure Arthritis on Sunday, May 21, 2017. If you or your family/friends are interested in participating (or donating), CLICK HERE to join Opus Capital’s team.  There is no cost to participate!                      
  MEET OUR TEAM

Adam T. Eagleston, CFA
  Adam T. Eagleston, CFA
Principal
and Portfolio Manager

View Bio
B. Rapking - Operations Associate
  Brad J. Rapking
Equity Trader

View Bio
Debra Gordon
  Debra Gordon
Director - Marketing
and Client Relations

View Bio
Nathan A. Bishop, CFA
  Nathan A. Bishop, CFA
Principal
and Portfolio Manager

View Bio
Len A. Haussler, CFA, CPA
  Len A. Haussler, CFA, CPA
Founder
and Portfolio Manager

View Bio

  Jakki L. Haussler, Esq., CPA
Founder and CEO

View Bio
David W. Wagner III
  David W. Wagner III
Research Analyst


View Bio
Michael R. Knapke
  Michael R. Knapke
Manager - Marketing and 
Client Relations

View Bio
John A. Ferguson, CFA
  John A. Ferguson, CFA
Principal
and Portfolio Manager

View Bio
Kevin P. Whelan, CFA
  Kevin P. Whelan, CFA
Principal
and Portfolio Manager

View Bio

  Nathanael A. Stewart, CFA
Associate Portfolio Manager
and Research Analyst

View Bio
Matt Mautino
  Matt Mautino
Operations Support

View Bio
Nathan M. Bailey, CFA
  Nathan M. Bailey, CFA
Associate Wealth Advisor

View Bio
Joseph P. Condren, CFA
  Joseph P. Condren, CFA
Principal, COO and CCO

View Bio

  CONTACT INFO

221 E. 4th Street, Suite 2700
Cincinnati, OH 45202
Office: (513) 621-6787
         
Copyright © 2017. Opus Capital Management. All Rights Reserved