Trail Financial Planning, LLC is a fee-only financial planning and investment management firm located in Bellingham, WA

3Q23 Investment Markets Review

3Q23 Investment Markets Review

This post is a Q3 investment market review.  You will find our thoughts on the market, what we are doing in investment portfolios as a result, and a few deeper dive resources.

What has happened in the markets

Stock and bond markets seemed quietly unsettled over the last quarter, and dropped a few percent from the gains from the first half of the year.  As an investor, I am feeling like my dog looks when I haven’t re-filled her water bowl.  She is like, “will you ever take care of me?”  It is normal to feel this way, however the mantra of long-term thinking should still be the guide. Just as an unhappy dog does not imply long-term malaise, a three-month market dip does not imply any sort of long-term trend.

Bond markets, meanwhile, are becoming interesting.  While the past few years saw significant losses, there are signs that the future may improve.  Bond funds are composed of individual bonds, and interest rates on new bond issues have grown alongside rising interest rates.  Thus, it is unsurprising to see distributions from bond funds grow throughout this year.  Distributions from bond funds are only one side of the return coin (the other side being price changes), but nevertheless, the arrival of some actual cash returns in the form of bond distributions is satisfying.

What we are doing in investment portfolios

Within client portfolios with bond allocations, we are seeing cash accumulate from larger distributions.  We are re-investing that cash to align with targets for diversification around the world and across different types of investment.

If you are an investment management client of TrailFP, we will contact you with details about our review of your portfolio and any actions taken as a result.

The rest of this message includes links to a written review of market performance and John’s audio tour of the report.

Detailed Market Performance – a read

To view a detailed analysis of investment performance in the US and global stock and bond markets, click on the button below.

Detailed Market Performance – a watch

The following link is a 5-minute audio tour of some of our observations of what has happened recently in the markets.  Some people prefer a guided tour over a read.  But, the tour will be too fast to read!

The investment market performance report is prepared by Dimensional Fund Advisors (DFA), one of our partners in investment management and client support.  If you would like to find out more about DFA, you can visit their website directly at:  https://www.dimensional.com/

Life and investing

The turning of summer to fall is one of my favorite times of the year.  As an introvert, it is as though the world is supporting my life preference – be quiet and reflect!  Or wander and reflect.  Here are a few photos from a recent Fall colors hike.

Disclosures and end notes

Information contained within is generalized information about investing and the investment markets.  It should not be considered investment advice, personalized or otherwise.  Past investment performance should not be used as a predictor of future investment performance.  Investing in markets comes with an inherent risk of losing money.

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John Chesbrough

John is a financial planner and investment manager. He, along with his business partner Elizabeth Snyder, founded, a fee-only, independent financial advisory firm called Trail Financial Planning (Trail FP) in Bellingham, WA. John and Liz enjoy working with people who care for others and their community – parents, firefighters, therapists, doctors, nurses, and teachers. They work with people by appointment. To learn more, or to schedule some time with John or Liz directly, please visit www.trailfp.com.