Volatility in the equity markets continues as we near the midterm elections.  We believe the volatility is largely a result of uncertainty regarding the election outcomes.  The US economy remains strong and there does not appear to be a recession looming in the near future.  Once the elections are over we expect equity markets to trade based more on earnings and less on ancillary noise.

During this current Bull Market we have experienced twelve declines of at least 5%, including five declines considered Corrections with at least a 10% drop.  In fact, according to BTN Research, 192 of the stocks in the S&P500 are down at least 10% year-to-date through Friday 10/26/18, while 103 of the stocks in the S&P500 are down at least 20% year-to-date.

Of course, all Bear Markets begin with Corrections, but we simply do not see one coming.    Time (and elections) will tell.


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.

All indices are unmanaged and may not be invested into directly. The Standard & Poor’s 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.


Happy New Year!  2017 was an impressive year for investors both foreign and domestic. We are optimistic that 2018 will be prosperous as well.  Our economy is growing, unemployment is low, and we expect additional growth as wages and Gross Domestic Product (GDP) are spurred by the historic tax overhaul. In short, we see no signs of any recession in the near future. Of course, Bull Markets don’t last forever but as Peter Lynch once said, “Far more money has been lost by investors preparing for corrections or trying to anticipate corrections than has been lost in the corrections themselves.”

The LPL transition is moving slowly, so we ask for your patience as we navigate through new technology, forms, and compliance.  If you need help with online access, please ask for Sarah.

If there have been any material changes in your investment objectives or financial conditions, please call or come in to review your accounts and make sure we are all on the same page.

Thank you for your business and referrals and we look forward to a prosperous 2018.

Formed in 2001 by the partners Bart Schannep, Rob Wright, and Tom Cariseo the company has now grown and expanded. To accommodate these changes,  a more generic / all encompassing name was needed. The most descriptive was:

  1. Where we are: The Southwest
  2. What do we do: Investment Advisors

Thus, the new name was simple enough!