The FOMC raised short-term interest rates, known as the federal funds rate, by 0.75% to 3.25% on September 13 and signaled that they expect the rate to reach 4.6% in 2023. This suggests that investors likely won’t see a rate cut next year.[i]
Stocks suffered their first three-quarter losing streak for the S&P 500 and NASDAQ since the Great Financial Crisis in 2009.[ii]
Many traditional asset classes have suffered large drawdowns this year as evidenced by year-to-date returns through September 30, 2022:
As a result of losses in the three major asset classes year-to-date, both the growth and balanced benchmarks have experienced significant declines:
CIG’s two largest investment strategies have fared far better than the benchmarks year-to-date:
|
CIG Dynamic Growth Strategy |
||
|
CIG Dynamic Balanced Strategy |
What has differentiated our composite returns during this time of volatility?
Active management and the use of alternative asset classes
You might find benefit in asking your advisor if they actively manage your investments and utilize alternative asset classes. We have seen many corporate sponsored retirement plans that can be less active and less flexible and do not always offer these alternative investment options.
Strategy Returns as of 9/30/2022:
|
CIG Dynamic Growth Strategy |
Year to date (a) |
1 Year (b) |
3 Year (c) |
|---|---|---|---|
|
Gross Return |
(11.88%) |
(8.63%) |
3.29% |
|
Net Return |
(12.69%) |
(9.75%) |
1.97% |
|
Growth Benchmark (d) |
(22.37%) |
(17.84%) |
3.81% |
|
CIG Dynamic Balanced Strategy |
Year to date (a) |
1 Year (b) |
3 Year (c) |
|---|---|---|---|
|
Gross Return |
(9.61%) |
(7.48%) |
3.09% |
|
Net Return |
(10.52%) |
(8.73%) |
1.63% |
|
Balanced Benchmark (e) |
(20.27%) |
(16.80%) |
2.15% |
