- Valuations are high
- Labor markets continued to tighten
- Signs of wage growth appeared
- Consumer and business confidence remained very high
- Companies grew both top and bottom lines
- Commodity prices remained depressed (though climbing)
- Interest rates hit a nearby rock-bottom low
Put all that together, and we get one very healthy, happy stock market!
One thing that surprised some investors this last quarter was the positive move by international markets– particularly the Emerging Markets. The return on that index last quarter was + 27.78%!
Those who practiced a globally diversified approach are yielding some great overall results.
In addition to Emerging Markets, here are the returns of four other major indexes from this last quarter:
- BarCap US Agg Bond + 3.14%
- S&P 500 + 14.24%
- Russell 2000 + 10.94%
- MSCI EAFE (Europe) + 19.96%
Like the old adage goes, “Markets will disappoint the majority.” Don’t be too surprised if we see some volatility as we end the year. October can be cahllenging for the markets, however November and December tend to do well. We expect the all-time highs to continue. However, this can create fear among investors. The more you are afraid and expect this strong market run to end, the more we believe it will continue.
Thank you for your trust and support. We appreciate it. Please let us know if we can do anything to help. Have a wonderful holiday season.
All the best,
Sloy, Dahl & Holst, Inc.