Third Quarter Recap

Following a calm start to 2014, financial markets ended the third quarter with a spike up in volatility. Global stock prices fell by 3.79% in the third quarter but still managed a year to date return of 3.80%.  Risky asset prices, in general, were down across the board.

Most notably, foreign developed market stock prices were down 7.03% in the third quarter and are now negative 1.26% for the year.  Meanwhile, the US bond market stayed relatively flat for the quarter but is up about 4.10% year to date (as measured by the Barclay’s Aggregate Bond Index). The table below shows performance for a range of major asset classes in 2014.

INDEX
YTD
FTSE Global All Cap
3.80%
S&P 500
8.34%
MSCI EAFE
(1.26%)
FTSE EM
5.20%
DJ US REIT
14.60%
GSCI Commodity
(5.64%)
Barclay’s Aggregate Bond
4.10%

There’s no telling what the fourth quarter will bring, but we’re likely to see continued bouts of heightened market volatility.  As highlighted in a previous post, the markets face many risks and uncertainties right now.  That being said, those headlines risks may not be the ones that ultimately matter most for investors.  You can read more in BCM’s latest newsletter.

The BCM Team

This blog is for informational purposes only. Nothing on this blog represents advice. Investing is inherently risky and involves the potential for loss. Victor Lai does not own any of the securities referenced in this posting. Clients of Bellwether Capital Management LLC may own shares of the securities referenced in this posting.

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