Ten Years Post-Lehman Brothers Bankruptcy

Florence could influence data for months to come

Last week, the East Coast prepared for Hurricane Florence, which roared through the Carolinas and Georgia. As investors kept their eyes on the weather and its potential for destruction, estimates emerged of up to $27 billion in hurricane damage. This potential for damage contributed to insurance companies in the S&P 500 declining last week.[i] While the hurricane likely won’t have a large effect on our economy, its destruction could influence data for months to come.

Meanwhile, last week brought another milestone in our economy: the 10th anniversary of Lehman Brothers’ bankruptcy. For 158 years, the Wall Street firm weathered the markets’ changes. By 2008, however, various challenges, including excessive risk taking, led to its demise. The firm’s unexpected bankruptcy announcement shocked investors and triggered market panic, leading what was a simmering financial crisis to become the Great Recession. A decade later, the markets are on more solid ground, and banks hold more capital and have stronger regulation. While some professionals or analysts warn of a potential looming recession, current market performance and economic data indicate just how far we’ve come.

Let’s examine last week’s data to understand examples of where we are today: Domestic indexes rebounded to post healthy gains for the week, with the S&P 500 adding 1.16%, the Dow gaining 0.92%, and the NASDAQ increasing 1.36%.[i] International stocks in the MSCI EAFE were also up, gaining 1.76%.

In addition, we received the following updates, which support a picture of a more robust economy:

  • Consumer sentiment jumped: The September reading was at its 2nd-highest point since 2004. The data reveals that consumers expect the economy to grow and create more jobs.[i]
  • Retail sales stalled but are primed for growth: Spending barely increased in August, after months of strong growth. However, analysts believe this data is “a blip” rather than an emerging trend, as tax cuts and a healthy labor market leave Americans with money in their pockets.[ii]
  • Industrial production rose for the 3rd-straight month: Auto manufacturing contributed to higher than expected industrial production in August. For now, trade tensions have not yet hurt this sector.[iii] 

These data reports may not show blockbuster growth, but together they indicate our economy is doing well. In fact, they were strong enough to lead many economists and analysts to increase their projections of how fast the economy expanded during the 3rd quarter.[iv]


Looking back, the markets have come far from where they were 10 years ago. But risks will always remain, as Hurricane Florence and Lehman Brothers remind us. Today and in the future, we are here to help you understand where you are and plan for whatever may lie ahead.

Also, for those affected by the hurricane, we’re ready to support your recovery and provide the financial guidance you seek.

ECONOMIC CALENDAR

Tuesday: Housing Market Index

Wednesday: Housing Starts

Thursday: Existing Home Sales, Jobless Claims

DATA AS OF 9/14/2018 1 WEEK SINCE 1/1/18 1 YEAR 5 YEAR 10 YEAR
STANDARD & POOR’S 500 1.16% 8.65% 16.40% 11.47% 8.78%
DOW 0.92% 5.81% 17.80% 11.21% 8.64%
NASDAQ 1.36% 16.03% 24.59% 16.56% 13.48%
INTERNATIONAL 1.76% -5.45% -1.02% 1.65% 1.29%
DATA AS OF 9/14/2018 1  MONTH 6  MONTHS 1  YEAR 5  YEAR 10  YEAR
TREASURY YIELDS (CMT) 2.02% 2.33% 2.56% 2.90% 2.99%

Notes: All index returns (except S&P 500) exclude reinvested dividends, and the 5-year and 10-year returns are annualized. The total returns for the S&P 500 assume reinvestment of dividends on the last day of the month. This may account for differences between the index returns published on Morningstar.com and the index returns published elsewhere. International performance is represented by the MSCI EAFE Index. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly.


[i] https://www.bloomberg.com/news/articles/2018-09-12/florence-to-batter-u-s-data-but-harm-to-economy-likely-small

[ii] https://money.cnn.com/2018/09/14/investing/lehman-brothers-2008-crisis/index.html

[iii] http://performance.morningstar.com/Performance/index-c/performance-return.action?t=SPX&region=usa&culture=en-US

[iv] https://www.msci.com/end-of-day-data-search

[v] https://www.cnbc.com/2018/09/14/september-consumer-sentiment.html

[vi] https://www.marketwatch.com/story/retail-sales-grow-by-smallest-amount-in-six-months-but-spending-primed-to-rebound-2018-09-14

[vii] https://www.marketwatch.com/story/us-industrial-production-up-for-third-straight-month-on-strength-in-autos-2018-09-14 [1] https://www.bloomberg.com/news/articles/2018-09-14/retail-sales-factory-output-signal-steady-u-s-economic-growth?srnd=markets-vp



Markets Up Again

Trade continued to dominate the news last week and cause market volatility as investors monitored discussions of the North American Free Trade Agreement (NAFTA) and tension with China. While Mexico and the U.S. reached a new trade deal early in the week, talks with Canada stalled on Friday, August 31. Reports also came out that President Trump may be adding tariffs on another $200 billion in Chinese goods.[i]

Domestic markets increased for the week and ended August in positive territory. The S&P 500 and Dow each had their best August since 2014—while the NASDAQ’s 5.7% growth was its best performance for the month since 2000.[ii] On Wednesday, the S&P 500 reached a new record high.[iii] For the week, the S&P 500 gained 0.93%, the Dow added 0.68%, and the NASDAQ increased 2.06%.[iv] International stocks in the MSCI EAFE joined the growth, adding 0.26%.[v]

Key Data From Last Week

Although trade might have dominated headlines, last week provided a number of informative economic updates, including:

  • Personal incomes grew in July.

The 0.3% increase fell slightly short of the projected growth but is still up 4.7% since this time last year. Combined with growth in personal consumption, this data indicates that consumers had a solid start to the 3rd quarter of 2018.[vi]

  • Gross Domestic Product (GDP) was higher than initially thought.

The 2nd reading of GDP expansion between April and June was 4.2%, higher than the initial reading and still the fastest economic expansion since 2014. Economists don’t believe this pace is sustainable, however, as rising interest rates, ongoing trade tension, and fading tax-cut benefits could slow growth later in the year.[vii]

  • Consumer confidence soared in August.

The latest consumer confidence data came in higher than it has since October 2000. This strong reading may indicate that consumer spending will remain healthy for now.[viii] Since consumer spending is more than ⅔ of the U.S. economy, its growth is a critical factor to track.[ix]

This week’s performance and reports once again underscore a message we have frequently shared with you: Instead of focusing on the headlines, pay attention to the fundamentals for a clearer understanding of the economy. If you have questions about how this data affects your financial life, we’re here to talk.

ECONOMIC CALENDAR

Monday: U.S. Markets Closed for Labor Day Holiday Tuesday: PMI Manufacturing Index, ISM Mfg Index, Construction Spending


[i] https://www.reuters.com/article/us-usa-stocks/wall-street-mixed-as-u-s-canada-trade-talks-end-idUSKCN1LG1IU

[ii] https://www.cnbc.com/2018/08/31/us-markets-global-trade-tensions-ramp-up.html

[iii] https://www.bloomberg.com/news/articles/2018-08-30/asian-stocks-to-weaken-on-tariff-plan-yen-rises-markets-wrap?srnd=markets-vp

[iv] http://performance.morningstar.com/Performance/index-c/performance-return.action?t=SPX&region=usa&culture=en-US

[v] https://www.msci.com/end-of-day-data-search

[vi] https://www.ftportfolios.com/Commentary/EconomicResearch/2018/8/30/personal-income-rose-0.3percent-in-july

[vii] https://www.bloomberg.com/news/articles/2018-08-29/u-s-second-quarter-growth-revised-up-to-4-2-on-software-trade

[viii] https://www.marketwatch.com/story/consumer-confidence-soars-to-18-year-high-2018-08-28

[ix] https://www.thebalance.com/consumer-spending-trends-and-current-statistics-3305916

There are New Developments in Healthcare Coverage!

Hello, Trumpcare!

What we see coming out in the next few weeks as the plans  available on the public exchange continue their meltdowns is this: a new “Short-Term Limited Duration” coverage plan that will span 36 months. The newest insurance regulations released have extended short-term limited duration plans out to 3-year terms in many states. These plans are alternatives to the ACA plans available on the public exchanges for those with pre-existing conditions. But, they promise to be more affordable, as the ACA plans aren’t realistic for the majority of Americans.We expect Georgia to soon approve this product line in the next few weeks. Stay-tuned to this space for updates.

Meanwhile, our Employer Select Group Plans* Have Doubled Their First-Dollar** Benefits!

*Available to groups of 10 or more. Groups of 5-9 enjoy 1/2 the total maximums with some exceptions. **First Dollar means the plan pays a defined benefit, as agreed, without you paying a single penny of deductible–$0 Deductible! Individual plans are available also. Contact us for details.

Don't Go Without Insurance!
Surgery is Expensive! Don’t Go Without Insurance!

Max Benefits are $5 million lifetime/$250,000 per Covered Person Per Year. Critical event coverage for Groups of 10+ start at $10,000 and range to a max of $40,000. That means you get a check in the mail for up to $40,000 if you are unfortunate enough to suffer a critical event! Individual plans allow critical-event coverage up to $50,000 in a lump sum payable to you.


This insurance actually pays as agreed, and you don’t pay a deductible. You pay any excess charges over the defined benefit. But, through Karis360, an additional service at no extra charge, your total bill is negotiated down from stated “retail” rates. 

M

MultiPlan allows PHCS network provider discounts, which average, all in-network charges are discounted 43% from stated “retail” rates. PHCS is the largest primary PPO network in the nation–available at no extra cost with over 900,000 providers. To check if your favorite providers are “in-network,” click the button:

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“Open the Pod Doors, HAL!…” Part IV–High Tech, Disabilities, & Monitoring

Bluetooth is the best thing that’s happened to remote controls since the advent of infra-red technology made them easier than radio. For those with disabilities, connectivity to smart devices is making vast improvements in not only functionality, but in performance of daily routines.

Two examples are: hearing aids and assistance for the cognitively impaired. Companies are making available hearing aids that connect to smart phone apps via Bluetooth technology that allow volume control, TV program switching, phone calls, streaming music, as well as enhancing the audible sounds in a room/place. Management of daily routines is likewise available for those residents in assisted living facilities (“ALFs”)and the like with cognitive impairment. One app displays colored buttons in the person’s residence that flash until the task, for which the customizable button was designed as a reminder, has been completed and the button pushed. The next button in the sequence is then activated. Examples of such activities are the morning rituals of brushing the teeth, combing the hair, eating, taking medications, etc.

ALFs and Skilled Nursing Facilities (“SNFs”) are finding such new technology is enabling them to provide better care services. As we’ve previously discussed, residents’ particular vital statistics can be monitored, analyzed, and diagnosed, from a distance. If patients get out of bed, have fallen, are wandering, or needs a change of linens or clothing, is depressed, has developed an infection, or a variety of other abnormal change in daily routine, alerts are triggered and information can be sent such that providers are able to manage the situation appropriately and timely. When an alert is sent that a resident is anxious or is experiencing a rise in heart rate or blood pressure, calming soundtracks may be played to help alleviate the temporal situation. Similarly, wireless oxygen and heart rate monitors can also set off alerts that cause comforting sounds to help adjust breathing.

Motion sensors placed about the homes are something we all are beginning to use for security purposes. But, such sensors can also track a cognitively impaired person’s movements and routines about a home. Even simply for aging persons who aren’t exhibiting signs of dementia, data can be gathered and analyzed to learn the person’s routines, track behaviors, activity patterns such as sleeping/rising and eating. Deviations from the norm can then be spotted and appropriate action taken by those responsible for monitoring such behavior–or simply by a concerned family caregiver “watching” mom or dad from a distance. Smart sensors can even identify differences in a person’s gait and other early indicators of dementia or depression, enabling assistance and early intervention measures to be implemented “ahead of the curve.”

This series is just another showing of how my group stays on top of the “Four Ts of Retirement Income & Longevity Planning.” Stay tuned to this space for the next discussion on Robotic developments in this arena. Meanwhile, contact me via the scheduling robot, email, or phone if you need help with your family’s situation.

“Open the Pod Doors, Hal!” continued…Space Aging in a Hi-Tech Universe

Medication Reminders

New tools are already available to remind folks to take their medications. These of course avoid problems such as mixing doses, which can make an existing problem worse or even lead to an otherwise unnecessary hospitalization. Taking meds on time every time and no more times than appropriate will lead to lower costs for everyone–including the healthcare industry.

Portable Diagnostic Devices

As we alluded to in a previous post, many hi-tech diagnostic devices are now portable, alleviating the need for the patient to report to a lab for testing. As we age, more frequent tests are required so that providers can monitor existing conditions , diagnose new ones, or simply maintain status on a person’s overall health. These new devices perform blood and urine tests, store, process, and instantly transmit data to providers for analysis. Such real-time reporting allows earlier diagnosis of problem areas thereby allowing earlier treatment–again resulting in lower healthcare costs all-around.

Emergency Responder Systems

These individualized systems have been around a while. Updates during the new “Internet of Things” era have added to their utility such that they can detect a fall, alert family or care providers if a dementia patient has wandered outside a protected area, and even help guide a person back home safely through GPS technology. These smarter devices enable caregivers to multi-task such as buying groceries, running errands, or just working. Airbags are being built into belts (see ActiveProtective smart belts) to prevent fall-related injuries. Meanwhile, the belt signals providers that the wearer has fallen and will need assistance.

We’ll go into a few other areas next post. Meanwhile, if you or a family member needs to look into a matter–contact us either by phone, through email, or use the scheduling robot to set an appointment. We offer comprehensive analysis and solutions to address all aspects of Retirement Income Planning.

Today’s One-Time Testing Labs Will Morph Into Real-Time Monitoring and Evaluation Services

Roles for Tech in Long-Term Care (1):
 
We anticipate that today’s discrete element testing services such as the LabCorp and Quest Diagnostic types, will morph into real-time data gathering models using wearable or implantable devices. Implants like pacemakers have been around for decades. So we’d expect little push-back on those such devices. If we compare that experience with the new implantable glucometers, which can be implanted directly into the senior’s body to track vitals, then perhaps we will get a more welcoming atmosphere for hi-tech monitoring devices. The key to understanding the monitoring is to understand that the information gathered upon which the care team makes decisions is always accurate. Because they are connected, data from these personal devices will be sent to cloud servers by such firms where it will be analyzed and crunched to determine individual patient trends and insights for the patient themselves, and their doctors and family. Ongoing reports will show important discoveries such as a decline in sleeping or exercise, or that insulin levels rise or drop at certain points in the day. Medical intervention can also occur immediately when required. So this type of real-time monitoring will occur not only in hospitals, where we have grown accustomed to IV monitors and such constantly clicking off data observations, but also in the home and about town–for off-site physicians as well as the patient themselves or family members.
 
For those persons suffering from cardiac, diabetes, or hypertension, hi-tech solutions come as biometric sensors, and smart glucometers. These wearable devices track vital signs and send emergency emails or texts in real time to care providers if current reading are outside expected parameters. They can also detect low levels of movement and “abnormal sleeping habits.” Such constant data gathering and monitoring to state individual norms and tracking against those provides necessary information needed by care teams so they can track behavior patterns and check on patients as required.
 
Before we go into the privacy concerns that should be clicking off alarm bells in your minds, we’ll go through several other areas where tech will be constantly monitoring us. “I always feel like somebody’s watching me….”

“Open the Pod Doors, HAL”–Today’s 50-Year-Olds Will Live the Space Odyssey

The Squeeze:

Recent estimates predict that the population of adults 85 and older in the U.S. will almost triple over the next 40 years. Simultaneously, the working-age population is expected to decline. This means the people requiring support–the elderly–will outnumber the ones able to provide such support, financially and otherwise. AARP calls this the “caregiver cliff.”

Meanwhile, costs to provide health care are expected to grow by over 200% for those between the ages of 70 and 90. We already see that governments, payers, and manufacturers, aren’t really producing reductions in healthcare costs. So, seniors need care solutions in order to be prepared for this impending rise in costs.

Enter Technology:

The new developments in robot and AI technology is expected to employ virtual home assistants and portable diagnostic devices that will be able to help provide better elder care, help control medical costs—and allow more seniors to stay in their homes longer.

The question is how receptive seniors will be to this technological intrusion into their lives. Those in their 50s now will probably be more open to relying on technolgoy, while those 20 years older may feel very uncomfortable accepting these changes. Consequently, there will be a growing interest and market for already available and maturing technologies to support physical, emotional, social and mental health.

Stay tuned with this space as my new book comes out soon that addresses these realities: The 4Ts of Retirement Income Planning (the name is subject to publisher approval). I’m staying on the cutting edge of planning–make sure you’re there with me!

 

Paul Tudor Jones (The Tudor Group) Says Brace for a “Frightening Recession”

Noteworthy for predicting the 1987 stock market crash, billionaire hedge fund manager Paul Tudor Jones warned investors at a Goldman Sachs “Talks” event that “we don’t have any stabilizers” to help stave off a deep recession at this time. “We’ll have monetary policy, which will exhaust really quickly, but we don’t have any fiscal stabilizers,” said Jones according to MarketWatch, which covered Goldman Sachs CEO Lloyd Blankfein’s interview of Jones on June 18, 2018.

Former Fed Chair Ben Bernanke also warns that the US economy is likely to nosedive once the massive dose of fiscal stimulus delivered by federal tax cuts and spending hikes wears off.

In particular, Tudor Jones noted that quantitative easing put in motion by the Fed in response to the 2008 financial crisis has produced real interest rates that not only are far below long-term historic norms, but also actually negative.

Tudor Jones elaborated: “You look at prices of stocks, real estate, anything. We’re going to have to mean revert to a normal real rate of interest with a normal term premium that’s existed for 250 years. We’re going to have to get back to that. We’re going to have to get back to a sustainable fiscal policy and that probably means the price of assets goes down in the very long run.”

CONTACT US to see how to plan for your needs in these uncertain times by using our appointment scheduler on this site to set up a discussion time.

Sources: https://www.marketwatch.com/story/hedge-fund-boss-who-predicted-87-crash-says-next-recession-will-be-really-frightening-2018-06-19; https://finance.yahoo.com/news/paul-tudor-jones-warns-next-recession-will-really-frigtening-203418073.html

Breakin’ Out to the Upside!

On Friday, the markets closed the week gaining traction. The Dow had 7 days of consecutive growth, rising 2.34%—its largest weekly gain since March. Meanwhile, the S&P 500 rose 2.41%, the NASDAQ jumped 2.68%, and the MSCI EAFE increased 1.41%.

Various factors came together to support the growth. From geopolitical topics to strong corporate earnings, we’ll focus on 3 key developments that drove movement.

1. Energy Shares Boosted by Iran Nuclear Deal Withdrawal

President Trump’s decision on Tuesday to withdraw from the Iran nuclear deal helped push the energy sector higher. With the possibility of renewed sanctions on the horizon, the anticipation of a pullback from global oil supplies helped boost prices. Though oil prices fell from a 3½-year high on Friday, it was the 2nd week of growth, driving energy shares to rise 3.8%.

2. Technology Sector Jumps Amid Strong Corporate Earnings

After the technology sector’s months of stagnation—fueled in part by recent fears over privacy—it is now approaching all-time highs. Since April 25, the information technology sector has increased 9%. The movement is driving many investors to join the rally, while many analysts remain cautious.4 Overall, the growth contributed 3.5%.5

This rally happened on the back of strong corporate earnings. Over 70% of total S&P 500 companies reported earnings growth that exceeded expectations. Last week’s positive reports helped push the index past 50- and 100-day moving averages.6

3. Inflation Remains Steady

The Consumer Price Index (CPI), which measures the price of goods and services, rose only 0.2% for the month in April and 2.5% over the year. These reports both missed and met expectations, respectively.7 The tepid growth caused some investors to worry that the Federal reserve would raise interest rates more quickly, as the U.S. dollar fell and held below its 2018 high.8 Some analysts, however, believe that the missed expectations should ease the Fed’s pressure to fast-track interest rates.9

Looking Ahead

We will continue tracking geopolitical developments—from potential actions against Syria, tariffs on Iran, and preparations for President Trump’s upcoming meeting with North Korea’s Kim Jong-un.10 In addition, key discussions around the American Free Trade Act and trade relationships with China remain on the horizon.11 We also will gain our first insights on how well consumer spending performed in the 2nd quarter.12

If you would like to discuss any developments or gain a clearer understanding of how these issues may affect your portfolio, contact us today. We are always here to help you make sense of your financial life and gain clarity for the road ahead. READY TO GET IN? CLICK HERE FOR CUSTOMER CENTER

ECONOMIC CALENDAR
Tuesday: Retail Sales, Housing Market Index
Wednesday: Housing Starts
Thursday: Initial Jobless Claims, Philadelphia Fed Business Outlook Survey, Bloomberg Consumer Comfort Index

DATA AS OF 5/11/2018 1 WEEK SINCE 1/1/18 1 YEAR 5 YEAR 10 YEAR
STANDARD & POOR’S 500 2.41% 2.02% 13.92% 10.80% 6.99%
DOW 2.34% 0.45% 18.70% 10.43% 6.90%
NASDAQ 2.68% 7.24% 21.04% 16.59% 11.71%
INTERNATIONAL 1.41% 0.45% 10.84% 3.21% -0.37%
DATA AS OF 5/11/2018 1 MONTH 6 MONTHS 1 YEAR 5 YEAR 10 YEAR
TREASURY YIELDS (CMT) 1.68% 2.06% 2.28% 2.84% 2.97%

Notes: All index returns (except S&P 500) exclude reinvested dividends, and the 5-year and 10-year returns are annualized. The total returns for the S&P 500 assume reinvestment of dividends on the last day of the month. This may account for differences between the index returns published on Morningstar.com and the index returns published elsewhere. International performance is represented by the MSCI EAFE Index. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly.

Why Didn’t Earnings Rekindle the Bull?

Domestic indexes posted strong results on Friday, May 4, as the latest labor report data lessened investors’ concerns about inflation and interest rates. Nonetheless, stocks had mixed results last week. The S&P 500 dropped 0.24% and the Dow gave back 0.20%, which marked both indexes’ 2nd week of losses in a row. Thanks to a bounce in tech stocks, however, the NASDAQ gained 1.26%. International stocks in the MSCI EAFE decreased by 0.57%.

Amid this relatively tepid performance, we reached a big milestone on May 1: Our current economic expansion is now officially the 2nd longest on record. For 8 years and 10 months, the economy has been growing, and many sectors still have room to advance.

As we look to better understand where we stand today, Friday’s employment report provides key insights into our economic health.

What We Learned About Employment

1. Growth Slowed
The report indicated that the economy added fewer jobs than expected in April, and average hourly wage growth also grew more slowly than forecast. Federal Reserve members watch this data closely to help anticipate changes in inflation.

2. Participation Dropped
The percentage of working-age people participating in the labor force dropped by 0.1%. This decline may result from people retiring or returning to school but can also come from people choosing to stop looking for work. The lower participation rate may contradict some of the more positive trends we’ve seen recently.

3. Unemployment Declined
Despite missing growth projections, unemployment fell to 3.9%, the lowest point in 18 years. The rate has only dropped below 4% during 3 other periods. The low unemployment numbers came more from the lower labor force participation rate than from more people finding jobs.

Key Takeaway
Lower participation rates could affect long-term economic growth. However, the combination of low unemployment and reasonable wage growth are likely a positive scenario for the economy. Many people who want jobs have them, but inflation should remain under control.

As the bull market lumbers toward its 9th year, many reports continue to indicate a solid economy. If the economic expansion continues through July 2019, it would be the longest in history (with records going back to the 1850s). While that accomplishment would be noteworthy, our focus remains on current circumstances, and striving to find insight that affects your financial future. From trade to jobs to manufacturing and beyond, we have many details to watch on your behalf.

ECONOMIC CALENDAR
Tuesday: JOLTS
Thursday: Consumer Price Index, Jobless Claims
Friday: Consumer Sentiment

DATA AS OF 5/4/2018 1 WEEK SINCE 1/1/18 1 YEAR 5 YEAR 10 YEAR
STANDARD & POOR’S 500 -0.24% -0.38% 11.46% 10.53% 6.54%
DOW -0.20% -1.85% 15.80% 10.13% 6.39%
NASDAQ 1.26% 4.44% 18.67% 16.37% 11.28%
INTERNATIONAL -0.57% -0.96% 9.60% 3.03% -0.60%
DATA AS OF 5/4/2018 1 MONTH 6 MONTHS 1 YEAR 5 YEAR 10 YEAR
TREASURY YIELDS (CMT) 1.67% 2.03% 2.24% 2.78% 2.95%

Notes: All index returns (except S&P 500) exclude reinvested dividends, and the 5-year and 10-year returns are annualized. The total returns for the S&P 500 assume reinvestment of dividends on the last day of the month. This may account for differences between the index returns published on Morningstar.com and the index returns published elsewhere. International performance is represented by the MSCI EAFE Index. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly.