Market Perspectives (October 2012)
- Volatility fell during the quarter, as stocks posted solid returns. Large companies outpaced smaller caps in the third quarter, widening their degree of year-to-date outperformance.
- Easing by central banks across the globe helped to boost international equity returns, particularly in emerging markets. Reduced tensions also resulted in a declining U.S. dollar, creating a tailwind for U.S-based investors.
- High-quality bonds added to their modest gains in the third quarter, as Treasury yields held steady. High-yield bonds once again were a beneficiary of investors searching for yield, as gains reached double digits year-to-date.
- The pace of economic growth remains disappointing, as second-quarter GDP was revised lower to just 1.3%. Subpar growth, stable inflation expectations, and the lackluster jobs market prompted the Fed’s announcement of QE3.
Read the full article>>