Trade uncertainty, which loomed over the markets for much of 2019, faded in the fourth quarter which allowed global equities to post strong gains.
US equities had a strong quarter with the US and China’s phase one trade deal announcement. Emerging and developed market equities also benefited from the easing trade tensions. The Federal Reserve cut rates again, stating that the current monetary policy is appropriate. Government bond yields rose (meaning prices fell) and corporate bonds outperformed. Overall, consumer sentiment rose due to wage growth, low inflation, and the lowest unemployment rate in 50 years. All of these factors support a strong US economy.
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 stock and bonds and an overview of major new events from the quarter.
An outline is included below, but be sure to download a full copy of the quarterly market review summary.
Notable Q4 Headlines
- Notable Q4 Headlines
- US Stocks Close Out Decade with 190% Gain
- US Deficit Hits Seven-Year High
- Fed Cuts Rate for Third Time This Year, Signals Pause
- US Unemployment Rate Drops to 50-Year Low of 3.5%
- US, China Agree to Limited Deal to Halt Trade War
Q1 Index Returns
US Market +9.10%
Real Estate +0.80%
US Bond +0.18%
Global Bond -1.11%