In the second quarter of 2018, global financial markets had mixed results as impressive domestic growth balanced out political unrest in Europe and declining trade relations all over the world.
The strong U.S. economy boosted domestic stocks in Q2, especially small caps and REITs. Despite underperforming international stocks during most of 2017, U.S. Equities are now outperforming their international counterpart. During the quarter, emerging-market equities suffered the biggest losses as the rising value of the dollar magnified current account deficits and complicated foreign financing needs. In fact, almost all currencies depreciated vs. the US dollar in the second quarter. U.S. interest rates increased, resulting in insignificant returns across most bond categories.
Let Us Catch you Up
If you don’t have much time, simply check out pages 3 and 4. You’ll see the overall performance of stocks and bonds and an overview of major news events from the quarter.
An outline is included below, but be sure to download a full copy of the quarterly market review summary.
Notable Q1 Headlines
- IMF Forecasts Global Growth of 3.9% This Year
- Yield on 10-Year US Government Bond Hits 3% for First Time in Years
- Unemployment Rate Falls to 18-Year Low
- Trump, Kim Embark on New Path
- Economic Growth in US Leaves World Behind
- Inflation Rate Hits Six-Year High in May
Q2 Index Returns
- US Market +3.89%
- Developed -0.75%
- Emerging -7.96%
- Real Estate +6.05%
- US Bond -0.16%
- Global Bond +0.48%