2nd Quarter Market Commentary 2019

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Equities finished the quarter in strong fashion with returns for each of the major markets above 6% in June, lifting year-to-date returns into double digits. Bonds also saw solid returns in the quarter with each of the major markets seeing a return above 3%, lifting year-to-date returns above 5%.

Within equities, US provided the strongest returns for the quarter and year-to-date at 4.3% and 18.5% respectively. International developed was generally on par with the US markets for the quarter, helped by a weaker dollar, but trailed by 4% year-to-date. Emerging market equities saw the weakest relative returns, and China saw negative returns in the quarter as trade tensions rose.

Mid-cap growth saw a return of 26.1% for the first half of the year leading the style pack while small-cap value trailed with a return of 13.5%.

The bond sectors saw some impressive returns with credit and long treasuries reaching double digits for the year-to-date period. Both investment-grade and high-yield bonds returned 10% for the year-to-date period while long-term treasuries saw the strongest returns within fixed income at 11%.

Across asset classes, US REITs saw the strongest year-to-date returns, just shy of 20%, but saw weaker relative returns in the quarter, 1.8%.

Gold saw a big bounce in returns for the quarter, providing the strongest asset class return for the quarter at 9%, lifting it to a 10% return for the year-to-date period.

 

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