October 2015 and Year-to-Date Returns for Our 6 Asset Classes

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The markets are inherently volatile and fickle. Sometimes the asset category which has been moving one direction throughout the year finally finds resistance and moves back sharply in the opposite direction.

Here is how the markets performed in October 2015:

201510 Asset Class Returns

October was a good month in all three stock categories and it was a reversal of the year-to-date trends.

US Stocks and Foreign stocks moved back into positive territory and Resource stocks gained back a large part of their losses.

How the markets performed Year-to-Date (through the end of October):


There is always the temptation to think that a category such as Resource stocks is “going down” (present tense) when all you can really say is that they have gone down (past tense) year-to-date.

Then all of a sudden (such as this past month of October) they reverse course and go up by 11.13%.

The returns for Resource stocks listed here are the returns for iShares North American Natural Resources ETF (IGE).

IGE is comprised of 87.9% stocks in the United States and 11.3% stocks in Canada. IGE is also 84.9% Energy and 8.7% Basic Materials.

Energy stocks in the United States have done no better than foreign energy stocks. Vanguard Energy Fund Admiral Shares (VGELX). which includes more foreign stocks is still down -12.4%. Vanguard Energy ETF (VDE) which is comprised almost entirely of stocks in the United States is down -13.4% year to date.

As always when there is a reversal of this type, investors who were actively rebalancing their portfolio were selling what had gone up and had bought what had gone down. They experienced the rebalancing bonus of volatile investments. In fact one of the lessons of the markets is that volatility helps increase the rebalancing bonus.

Follow David John Marotta:

President, CFP®, AIF®, AAMS®

David John Marotta is the Founder and President of Marotta Wealth Management. He played for the State Department chess team at age 11, graduated from Stanford, taught Computer and Information Science, and still loves math and strategy games. In addition to his financial writing, David is a co-author of The Haunting of Bob Cratchit.

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Wealth Manager

Austin Fey is a Wealth Manager at Marotta Wealth Management, specializing in charitable giving and asset allocations. She is a regular contributor to our Marotta On Money articles, often giving advice to those just getting started in finance.

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