In the most recent quarter every asset class, including stocks and bonds, was up! Because of strong bond performance globally, all our clients made out well, around 2.5% to 3.0% whether they were in a mostly stock or mostly bond portfolio. That doesn't happen often! That's annual run rate of 10-12 % - which we would welcome every year.Click here for our Q2 Global Market Review and click here for Model Portfolio Performance Summary.All returns were up and all were "within a range" not far above or below their quarterly average.Here's a comparison of how some of the asset classes as represented by indices performed: USA, large & small Russell 3000, +4.1%, International Developed Countries xUS, +3.8%, US Bonds +3.1% and Global Bonds xUS +2.8%. "Losers" include Emerging Markets, +0.6%.We expect small to outperform large most of the time, this quarter in US, S&P 500 (large) +4.3% and Russell 2000 (small) +2.1%.
We have a "Goldilocks"economy and market right now. It's never perfect and there are ALWAYS events that can occur that will upset the seemingly Goldilocks scenario. In fact, that's the nature of the markets - ALWAYS. they go up and down, out of our control. Some people claim they can predict market movements and they may get lucky every so often. Just consider the question, "Will the market go up, down or stay flat in the next year?" You have a 1/3, or 33% chance of being correct if you guess. If you're wrong and a good "talker" - you can give the reasons why you were wrong. Or better yet, these smooth talkers change the subject to the next prediction.