3rd Quarter 2019 Review

3rd Quarter 2019 Review

Overview

With political news dominating the headlines, the U.K. set to “Brexit” in October, and tensions rising in Iran, there appears to be no shortage of external risks for investors both domestic and abroad. Nonetheless, low interest rates, unemployment, and strong corporate earnings indicate that the U.S. is still performing well economically, as the bull market marches toward an 11th year of expansion.

U.S. Stock Market

Despite the risks highlighted above, the stock market, as measured by the S&P 500, still remains positive by approximately 20% year to date. More specifically, stock performance for the 3rd quarter was somewhat muted, albeit slightly positive for U.S. market. Domestic stocks rose around 2% for both the S&P 500 and Dow Jones Industrial Average. Smaller stocks, as seen through the Russell 2000 Index, retreated (2.4%) during the period. The healthcare segment remains the biggest lagging sector of the year although these stocks still have posted a year to date gain of almost 5%. This sector will likely continue to see volatility as healthcare remains a focal point for politicians who may legislate price limits ultimately affecting corporate profits.
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