Equities were on a wild rollercoaster ride in October. In fact, if you took a historical perspective of the DJIA 30 since inception, there has never been a month where a significant correction has occurred that saw the index run back up to new highs in the same month. The S&P 500 ended the month up +2.44 after declining -5.55% through October 16th and exploded up over 8% the last 11 trading days. Small caps led the domestic markets finishing up +6.59%.
Treasuries rallied sharply in October as the ten-year Treasury yield plunged to 2.33%. This level had not been seen since May 2013.
On October 16, the VIX index hit 31 for the first time since November 2011 before plummeting and ending the month at 14.03. Recognizing that these dramatic moves often cause anxiety with investors, it might be good idea to hedge some of the risk in client portfolios to keep them invested for the long-term.