Save The Date – October 12 at 4PM EST / 1 PM PST

Our clients and their guests are invited to join an exclusive live webinar on Monday, October 12 with special guest Apollo D. Lupescu, PhD.   Dr. Lupescu is a Vice President and unofficial “Secretary of Explaining Stuff” at Dimensional Fund Advisors (DFA), one of the country’s premier investment firms. DFA manages over $500 billion for institutional investors and clients of select financial advisors, such as Summit.  He is an internationally recognized speaker who has delivered hundreds of lectures and seminars to financial professionals and individual investors on various investment topics.  Dr. Lupescu will be offering his unique insights on topics including: the impact of the election on the markets; the disconnect between the market and economy; government stimulus spending, inflation and debt outlook; and context on the coronavirus crisis and impact on the economy.

Instructions for how to register and submit questions will be shared soon.

Investment Commentary

Stock prices have recovered from their low points earlier this year, but it has not been an even recovery.  An equally weighted portfolio of Apple, Microsoft, Amazon, Alphabet (Google) and Facebook has increased 39.85% year-to-date through September 14th.  The returns on these stocks have boosted the NASDAQ 100 to reach all-time highs on multiple occasions this summer.  However, most stocks did not share in such strong returns.  The S&P 500 Index is weighted based on the market value of each holding, which means the strong performances of the tech stocks mentioned above have dominated the index return of 6.22% YTD through September 14.   In fact, an equal weighting of all 500 stocks in the S&P 500 Index posted a decline of (2.89%) during that same time, while the S&P 400 Mid-Cap Index and the S&P 600 Small-Cap Index posted respective declines of (7.22%) and (13.18%).

A review of how the composition of the 10 largest domestic stocks have changed over time reminds us that narrow markets do not exist indefinitely, and that market leaders tend to change over time.

We continue to manage our client portfolios with the belief that diversification and risk management are the most crucial elements in any market environment for meeting long-term goals.

For recent insights from other resources, we suggest Brexit is Bank: The Endgame for Investors by Jeffrey’s Kleintop; Federal Reserve Raises the Inflation Hurdle by Kathy Jones; and Is the Stock Market Divorced From Reality by Weston Wellington.

Welcome New Summit Family Member

We are happy to announce the birth of Corbin Edwin Stover to Staff Financial Advisor Tiffany and her husband Shawn!  Corbin made his debut on September 6th weighing in at 7 pounds, 10 ounces and 20 inches tall.   Please join us in congratulating these first-time parents!