Our 401(k) Committee met on October 23, 2018 to conduct a quarterly review of our plan. As always, we reviewed the general performance of the financial markets and the specific performance of the funds within our plan.
This current Bull Market is close to becoming the longest Bull Market in history. The markets finished the 3rd Quarter up quite a bit. Large Cap Blend finished up 7%, Mid Cap Blend finished up 3.8%, Small Cap Blend finished up 3.2%, International Funds ended up .61%, and Bonds finished up 2%.
Noteworthy Items: The American Century Heritage Fund was removed from our portfolio and replaced by the Carillon Eagle Mid-Cap Growth fund.
- After performing well in 2017, per the Watch List Policy, the T. Rowe Price Value Fund will be placed on the Watch List effective immediately.
- Reminder: Per our Watch List Policy, the Neuberger Berman Genesis Fund was placed on the Watch List as of 3/31/18.
Investment Performance Rankings: Due to a strong performance in Q3 2018, our average fund ranking for the quarter improved; the 1-year ranking dropped a bit, and the 3, 5, and 10-year categories held steady or improved slightly. The Q3 2018 investment performance rankings are:
3 Month: Top 56th percentile, 1 Year: Top 49th percentile, 3 Year: Top 29th percentile, 5 Year: Top 21st percentile, and 10 Year: Top 19th percentile.
Outlook for 2018
It is extremely difficult to try to anticipate the Top & Bottom of a market. Yesterday (10/24/18), the Nasdaq sank 4.4%, the Dow dropped 2.4%, and the S&P fell 3.1%, basically wiping out this year’s gains. A U.S. midterm election is less that one week away; the impact of trade tariffs hasn’t been determined; the bull market is almost 10 years old; the U.S. economy is strong, but foreign economies have faltered this year.
The smartest approach is to remain diversified across asset categories and strategies. For those of you who are new to Geiger Ready-Mix or who have never had the opportunity to invest in a 401(k), the best advice I can give is to get in the “game,” contribute as much as you can, pick an investment strategy that you are comfortable with, and stay in the “game” until you retire. There is not a better way to build a retirement portfolio in a tax favored way.
401(k) Committee Members:
Present at the meeting: Wendy Wibberding, Blaine Weeks, Todd Geiger, Bill Geiger, Julie Geiger, and Steve McDonald.