QUARTERLY COMMENTARY Q3: THIRD QUARTER REVIEW

QUARTERLY COMMENTARY Q3: THIRD QUARTER REVIEW

Tue, October 01, 2019

QUARTERLY COMMENTARY Q3: THIRD QUARTER REVIEW

Global equities declined slightly during the third quarter, with markets unable to move decisively in an environment of heightened uncertainty.

Global equities, as represented by the MSCI All Country World Index, were flat during the third quarter but have gained 16.2% year-to-date through September 30th.  U.S. large company stocks led the way, returning 1.7% for the quarter and 20.5% year-to-date.   U.S. small company stocks have gained more than 14% year-to-date but fell 2.4% during the quarter.  Emerging markets stocks declined 4.2% for the quarter, hurt by tariff fears and worries about global growth.  Large company value stocks rebounded strongly in December but still trail growth stocks year-to-date.  Bonds were a solid counterweight to equity volatility, providing income and market appreciation as interest rates fell.  Longer-term bonds particularly benefited from falling interest rates, with the Bloomberg Barclays Aggregate Index returning 2.2% for the quarter and gaining more than 8% year-to-date.