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Perspectives Newsletter: Q3, 2018
The weakness of the first quarter, when the S&P 500 closed lower in February and March, has become a distant memory. Building on the momentum coming out of the second quarter, the S&P 500 hit a new closing high on August 24th, surpassing the one set on January 26th. The rally in large cap stocks continued unabated through September, a month that has registered positive returns in only a third of the years since the 1960’s. Small cap stocks were unable to escape the September doldrums and, after pacing their large cap peers for much of the year, wound up lagging badly in the quarter. Like the second quarter, both growth and value stocks “worked” as they moved higher together, though growth continued to widen the performance gap compared to value. Dollar strength, slowing growth and trade related fears all conspired to hold down international indices: developed international returns were muted, and emerging markets were outright negative once again. China, down over 24%, sank firmly into the grip of a bear market. The continuing performance divergence between small caps and emerging markets has reached nearly historic proportions.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Parsons Capital Management, Inc.), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Parsons Capital Management, Inc. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Parsons Capital Management, Inc. is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. If you are a Parsons Capital Management, Inc. client, please remember to contact Parsons Capital Management, Inc., in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing, evaluating, and/or revising our previous recommendations and/or services. A copy of the Parsons Capital Management, Inc.'s current brochure discussing our advisory services and fees is available upon request.
