2018 Third Quarter Market Review

We are pleased to present you with the 3rd Quarter Market Review.  The stock and bond markets continued their 2018 theme of varied returns in the 3rd quarter.  This can often lead to some confusion when reading a news headline about a “strong market”, as we need to take a closer look into the details to see what has actually transpired.

The US stock market had a very strong 3rd quarter with returns that were far above average gains for a 3 month period.  However, this was offset by below average returns in the International markets and bond markets.  These trends have already seemed to reverse course in the very beginning of the 4th quarter, but most importantly the variance in returns is an excellent reminder of the benefits of a diversified portfolio.  The diversified approach captures returns from all areas of the stock and bond markets in the correct proportions while smoothing out some of the inevitable bumps in the road along the way.  The linked report details the performance of the various stock and bond asset classes and shows the effect of a diversified portfolio maintained over a longer period of time.  As always, please reach out with any questions.

 

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