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Global stocks were slightly positive for the month as both U.S. and International large cap stocks rose while small caps stocks were down both domestically and internationally. Bond returns were negative across the board with the exception of short‐term bonds which were up 0.1% in September. Global REITs and managed futures were down while commodities (+1.9%) posted a strong month and reinsurance continued to climb.  

Economy 

  • The second estimate of 2nd quarter real GDP growth came in at an annualized rate of 4.2%. This increase of 2% from first quarter’s growth rate marks the fastest growth rate posted since the 3rd quarter of 2014.
  • Inflation, measured by the Consumer Price Index for all goods, dropped slightly to 2.7% year‐over‐year.
  • Unemployment remains near business cycle lows at 3.9%.
  • Consumer confidence rose even higher for the fourth month in a row.

Stocks

  • U.S. stocks produced mixed results this month with the S&P 500 (+0.6%) generating modest gains while U.S. small cap stocks (‐2.4%) gave back some of their 2018 gains.
  • International small value stocks (+2.1%) had the best month for international equities while emerging markets stocks (‐0.5%) experienced another month of declines.

Bonds

  • Bond returns were mostly negative in September, with intermediate‐term bonds down 0.4%, international bonds down 0.2%, and inflation‐protected bonds down 1.1%.
  • Short‐term bonds (+0.1%) were slightly positive for the month.

Alternatives

  • Global REITs (‐2.2%) and managed futures (‐0.6%) struggled to losses during September. However, commodities (+1.9%) and reinsurance (+0.1%) finished the quarter on a positive note.

Read our complete September 2018 Economic and Market Commentary for Market Returns Year-To-Date, Market Returns Longer Term Annualized, Economic Indicators, and an Appendix.


Sources: Bureau of Economic Analysis (BEA), Federal Reserve, Morningstar Direct, and Standard and Poor’s.

This is intended for informational purposes only and should not be construed as legal, investment or financial advice. Please consult your legal, investment and financial professionals regarding your specific circumstances.

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