Perspectives Newsletter: Q3, 2014
Before falling -1.4% in September, the S&P 500 closed with one new all-time high after another, the last one on September 19. During the quarter, strength was concentrated in mega-cap stocks, and there was wide dispersion among all stock asset classes. The US significantly outperformed international and emerging markets, due to relative currency depreciation abroad and signs of slowing foreign economies. Domestic large cap outperformed mid cap and especially small cap, as concerns rose over smaller companies’ access to capital in a rising rate environment.