In this issue: Global Market Highlights  |  Outlook - Climbing A Wall Of Worry...Until We Get To The Top  |  Quarterly Bond Market Overview Earnings and Economic Growth Decelerating, Valuations Stretched - Markets Rising? By Theresa Gusman, Chief Investment Officer  |  Download PDF US equities continue to hit new highs. After its best first half in 22 years, the S&P 500 posted a 1.7% gain in the third quarter. Global equity markets were mixed. Japanese, European and US equities rose in the third quarter, while non-Japan Asia and Emerging Markets declined, paring gains for the year. Volatility persisted during the quarter. Global equity markets advanced and declined along with trade tensions, Brexit news, and monetary easing amid slowing economic activity and continued low inflation. Despite the volatility, equity markets remain resilient, even as global growth slows, earnings growth decelerates sharply, and valuations are stretched.

In this issue: Quarterly Performance Benchmarks  |  Global Market Highlights  |  Outlook – Climbing a wall of worry…Until we get to the top  |  Quarterly Bond Market Overview Download PDF Mixed signals: New Highs, Decelerating Earnings Growth, Stretched Valuations By Theresa Gusman US equities continue to hit new highs. The S&P 500 posted its best first half in 22 years, rising 18.5% through the end of June. Stock markets advanced worldwide, with developed and emerging international markets up 14.0% and 10.6%, respectively, year-to-date, and 3.7% and 0.6% in the second quarter. Volatility persisted during the quarter, with global equity markets rising and falling along with trade tensions -- until it became apparent that the Federal Reserve would be quick to reduce rates amid slowing economic activity and continued low inflation. Fresh highs come amid slowing global growth, sharply decelerating earnings growth and stretched valuations.

First Affirmative’s key messages to advisors at the 2019 FPA NextGen Gathering: