Global Market Summary

In the third quarter, risky assets rallied across the globe; almost all major markets posted gains. Year to date, the S&P 500 has risen over 7.8%, the MSCI EAFE (USD) Index is up 1.7%, the MSCI EM(USD) Index is up 16%, and the Merrill Lynch High Yield Bond Index has appreciated 15.3%. Positive economic data, particularly in the US and China, a reprieve from new macroeconomic challenges, and broad investor...

In the second quarter of 2016, equity markets and investors’ expectations were rocked by the results of the UK’s vote to exit the European Union. Prior to the Brexit, the markets seemingly scaled a wall, overcoming obstinate, lingering concerns about lackluster global growth. The IMF projects that global GDP will grow 2.4% this year – a positive number, but one which leaves some market participants uneasy given the extraordinary stimulus...

US equity markets ended the first quarter of 2016 with a modest gain of 1.3% after recovering from their worst start in modern market history. Equity indices were battered in early January; market turmoil abroad, specifically in China, sparked a global move out of risk assets. Uncertainty surrounding the continued drop in oil prices, the health of the financial sector, and concerns over decelerating global growth held even the most...

In 2015, the S&P 500 Index posted a small gain while most global equity benchmarks ended the year in the red. Fixed income markets acted similarly, with lower risk securities flat for the year while their higher risk counterparts declined. For the first time since 2006, the US Federal Reserve raised interest rates, kicking off a new era in monetary policy. While the rate hike was hardly a surprise, it...

During the third quarter, volatility returned and risk assets around the globe declined dramatically as investors’ appetite for risk evaporated. The S&P 500 held up relatively well, declining by 6.4%, while the MSCI EAFE lost 10.2%; emerging markets fared the worst, with the MSCI EM Index declining by 17.8%. Investors’ uneasiness was bolstered by uncertainties surrounding the amount and timing of interest-rate hikes in the US and the prospect of...

Equity markets ended the quarter with modest gains as investors’ attention shifted between crises in Greece, China, and Puerto Rico. During the month of June the aforementioned captured headlines on a nearly daily basis, while discussions about the timing and amount of the Federal Reserve’s first rate hike took a back seat. Undoubtedly, each of these crises has its own set of extenuating circumstances and risks, but long term investors...

Following a familiar story, major central bankers’ accommodative monetary policies continued to flood the global markets with cheap capital to cajole investors into maintaining sufficient confidence to contribute to stable, healthy economic growth which occurs in part through acquisition of risk assets. Declining commodity prices and inflation expectations have allowed for even more fiscal interventions across Europe and Asia. Globally, an impressive 17 stock indexes set fresh highs, and another...

The US equity markets continued their upward trajectory in 2014, with the S&P 500 posting a gain of 13.7% for the year. This is the sixth consecutive year of gains for large-cap US equities in what has become the longest bull market since the 1970’s. The US economy has exhibited remarkable resiliency over the last six years, while Europe and Japan have struggled with how to reinvigorate their economies; US...

In the third-quarter, U.S. large-cap equities posted modest gains of 1.1%, while small-cap equities and high yield declined by 7.4% and 1.9%, respectively. Positive news regarding employment and manufacturing continued to paint a picture of an improving domestic economy. Investors generally ignored geopolitical events, such as the conflict in the Ukraine and the spread of ISIS in Iraq, and seemed more concerned that improving economic trends, especially increased strength in...

Equity and credit markets ended the quarter on a high note, with the S&P 500 and the Barclays Capital Aggregate Bond Index appreciating 5.2% and 2%, respectively. Investors’ appetite for risk assets remained steady in the face of a surprisingly large negative revision to U.S. first-quarter GDP growth, uncertainty surrounding future monetary policy, and political unrest in the Ukraine and the Middle East. During the quarter, the S&P 500 completed...