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Market Highlights Q3 2019
Much like the second quarter, this quarter was full of ups and downs. As investors responded to continuous rhetoric about the US-China trade war, as well as the Brexit debacle in the UK, waves of conflicting economic news, and swirling political turmoil here at home, stock prices experienced a level of volatility that has become the new normal. By quarter-end, the result was modest upticks for the Dow and the S&P 500, and small declines for the Nasdaq and the Russell 2000. The most dramatic movement came from the 10-year Treasuries, which fell by more than 100 basis points due to the Fed’s two interest rate cuts.
As we head into the final quarter of the year, there is uncertainty about the short-term outlook for stock prices. News on the trade war seems to change by the minute, global economic growth is continuing to slow, and the potential impeachment of Donald Trump is sure to throw some uncertainty into the minds of investors. Still, there’s plenty of good news to be had. Unemployment remains at record lows, the cut in interest rates is boosting buying power, wages and spending are still growing, and the US economy remains solid overall.
Because history does repeat itself, my confidence in the long-term strength of the capital markets remains stronger than ever. If there are short-term blips in growth ahead, remember why you’ve invested the way you have, and keep faith in your plan. If you have questions along the way, I’m always happy to offer the long-term perspective.