September 2021

August is normally a quiet month in the markets, and this month was no exception. August 31st was the lowest volume for the year for the S&P500. We did however see very measured but strong, positive returns. While I'm sure high single-digit or even double-digit returns would be exciting, I'm much more comfortable when index funds produce steady, consistent returns over the long-run. Individual stocks are of course another matter. I am very impressed with the individual returns at Fidelity and those managers deserve a great deal of credit for choosing the correct stocks to generate significant returns. For those of you that subscribe to TSP Coach, you will notice the limitations of being locked into straight index funds. There is obviously higher risk with these mutual funds over the TSP, but these funds give you more options to maximize your retirement potential. I am still confident in the short to medium-term in the strength of our economy and the markets. As I have indicated numerous times, inflation will be a source of lasting concern for many months if not years to come. However, as we shift back to an economy driven by larger consumer demand, we will see stocks in the in the broader index benefit. I know many of these mutual funds have specified objectives, but the fund managers know the impact of inflation as well and will be adjusting their investments accordingly. My biggest driver this month is the Sortino standard deviation (SSD). In most cases the lowest SSD is getting the highest investment, except in cases where the average monthly return is much lower than the other funds in the mutual fund group. I mentioned in last month's post I though the Delta variant would peak in August, and many sources have confirmed that the peak is present in many parts of the country, with the US as a whole just about at the peak. The US and many parts of the world are coming to the realization lockdowns have run their course, vaccinations notwithstanding, and the world will continue opening up for business (e.g., Denmark). Let's be positive, pray for our US Marines, and our country. Keep investing!