Sloy, Dahl, & Holst | Third Quarter Financial Market Review
October 26, 2017
What a great 3rd quarter! Once again, the stock market continued its 2017 trend of looking very healthy. Here at Sloy, Dahl, & Holst, we expect this trend to continue on through the 4th quarter and end on a great note before the New Year.
Let’s begin our recap of the third quarter by looking at the returns of five major indexes:
BarCap US Agg Bond: +3.14%
S&P 500: +14.24%
Russell 2000: +10.94%
MSCI EAFE (Europe): +19.96%
MSCI EM (Emerging Markets): +27.78%
Right away, you probably noticed more than one international markets on that list. This goes to show that investors who only invest in the S&P 500 will, in the long term, tend to lose money. Here at Sloy, Dahl & Holst, as a general rule of investing, we always practice a globally diversified approach.
There were many good things going for the stock market this last quarter:
Signs of wage growth
Tight labor markets
Companies growing both their top and bottom lines
Low interest rates
Value-oriented stocks continued their strong trend. In fact, Financials climbed nearly 5% for the quarter! Financials should continue to move in step with the 10 Year Treasury through the end of the year.
In summary, the third quarter of 2017 was very successful, with a number of “all-time high” headlines making the news. We expect this to continue into the 4th quarter and finish the year off strong.
Thank you for your confidence. We wish you all the best as we head into the holiday season.