Banach Wealth Management Nov. 1, 2008 Letter

October 2008 Markets Review
Large Losses across All Markets
Panic Volatility & Selling
Key Points
  • Year to Date Total Returns
    S&P 500 (969) -33%
    US 10 Yr Bond (3.96%) 0%
    NASDAQ (1731) -35%
    Foreign (EAFE) Stocks -43%
  • 2008 US GDP expected growth = 0.6%
  • 2008 earnings decline expected = -8.5%
  • Negative 2008 portfolio returns
Executive Summary
Equity markets imploded (S&P 500 -17%) in October.
All markets suffered a lack of confidence. Volatility
exploded and risk premiums increased ……

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