Financial Markets Commentary 3rd Quarter 2018Submitted by Capital Strategies Financial Corporation on March 27th, 2019
The U.S. stock market posted another strong quarter, rising 7.20%.i Once again, however, it was pretty much the “only game in town”. International markets were about flat on balance, with developed markets up 1.51% and emerging markets down -2.16%.ii Bonds were almost unchanged as the S&P U.S. Aggregate Bond Index rose 0.07%. The question on every investment professional’s mind lately is “How long can this divergence last”? Many professionals believe that either foreign stocks have to surge or U.S. stocks need to decline because the performance and valuation gaps between the two are almost historically wide. That said, the trend has been to overweight U.S. stocks and hope the point of transition is both gradual and resolved by foreign stocks rising.