Market Commentary - October 2011
Posted on Friday, October 14, 2011
Volume 13, Issue 3: Read Full Version or Download PDF
Worst Quarter for Stocks in Years. Our Advice: Hang in There!
by R. Kevin O'Keefe, CIMA®, AIF® | Chief Investment Officer
Stocks tumbled in the third quarter with the S&P 500 finishing down 14%. Global indexes suffered their largest percentage decline since the first quarter of 2009. The damage was worst in Europe, where French and German stock indexes both lost more than 25% of their value, their biggest quarterly declines since 2002. Read more
Flight to Quality Continues. How High Is Up?
by Charles Sandmel AIF®, CFP®
The bond markets both surprised observers and confirmed the long-standing pattern that uncertainty drives investors to high quality. The surprises were 1) that Treasurys rallied despite the downgrade of the USA credit rating while stocks declined; and, 2) that longer-term bonds, which are inherently riskier than shorter-term bonds, outperformed. Since bond prices and yields move in opposite directions, two questions emerge (again)-how high can bonds go and how long will bond market interest rates remain so low? Read more