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Market Recap: 3rd Quarter 2019

October 8th, 2019 | Written by

Market Recap Q3 2019

Results for the 3rd quarter were mixed.  The quarter got off to a good start as the U.S. and China agreed to continue trade negotiations and the U.S. postponed further tariff increases.  This news, along with the Federal Reserve signaling an interest-rate cut, helped markets rally to new highs.  However, in August, trade issues heated up again with both countries announcing new tariffs causing markets to stumble.  In September, renewed hopes on trade reappeared with China waiving tariffs on some goods, while the U.S. delayed implementation of new tariffs.  Again, the market rallied.  Overall, large U.S. stocks managed to gain around 1.7% for the quarter, while smaller U.S. stocks lost 2.4%, and both international stocks (down 1.00%) and emerging market stocks (down 4.11%) lost ground as well.

Global economic activity continued to weaken.  The U.S. economy grew more slowly in the second quarter at a 2.3% rate.  Signs of further slowing in Germany and China concerned international investors.  The slowing economic activity lead central banks around the world, including the Federal Reserve, to lower or consider lowering interest rates.  The Federal Reserve cut interest rates twice in the quarter (0.25% both times).  The yield on 10-year Treasury bonds continued to fall, ending the quarter at 1.68%.  The decline in interest rates helped bonds outperform stocks, with the overall bond index up 2.27% for the quarter.

As we head into the last quarter, we remain focused on monitoring economic conditions, maintaining balance in our clients’ portfolios, and assessing potential risks.  As always, please do not hesitate to reach out to us with any questions about your portfolio.

Index3rd Quarter 2019Year-to-date
Dow Jones 301.83%17.51%
S&P 5001.70%20.55%
Russell 2000-2.40%14.18%
Bloomberg Barclays U.S. Agg Bond2.27%8.52%
MSCI EAFE Index-1.00%13.35%
MSCI EM Index-4.11%6.23%

Sources: Y Charts and J.P. Morgan Asset Management

Figures as of September 30, 2019. Past performance cannot guarantee future results.

 

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This information is not intended to be used as the only bases for investment decisions, nor should it be constructed as advice designed to meet your particular needs. You are advised to seek the advice of your financial advisor prior to making any decision based on any specific information contained herein.
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The Prosperity Consulting Group registered as a Registered Investment Advisor (RIA) in 2005. We have with a passion for providing clients with objective investment advice and wealth management solutions. Our purpose, coupled with our fiduciary commitment, is essential in helping clients achieve their financial goals. Our firm is dedicated to providing unparalleled financial planning and investment advice to individuals, families, businesses and institutions. We have identified key areas that are critical and integral to a client’s financial success. These planning areas encompass: Investment Planning & Management Retirement Planning Estate Planning Tax Planning Business Planning Insurance Planning Income Protection & Asset Preservation Education Planning 401(k) Planning
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