Third Quarter Market Review from Sloy, Dahl, & Holst

Throughout the 3rd quarter of 2017, we’ve seen the year’s solid run in equity markets continue. Despite the ongoing threat of North Korea and limited policy advancements from President Trump and his administration, the stock market continues strong.

Valuations remain on the high end of the range. Even so, labor markets continue to tighten, signs of wage growth are more apparent, and consumer and business confidence is high. 
Companies are growing both top and bottom lines and though commodity pricing is gradually climbing, they remain depressed overall. Across the board, interest rates are at rock-bottom levels.

Put it all together, and we have a very health stock market!

Throughout this year, and especially in the 3rd quarter, we saw a positive move by international markets. This is particularly true of Emerging Markets. For 6 years (from 2010-2016) nearly all equity markets outside of the United States remained mostly stagnant. US stocks, on the other hand, have seen a historic run.

At Sloy, Dahl, & Holst, we practice a globally diversified approach. This has yielded better results in the long term. Now, our investors are seeing the reward of staying patient through lagging international equities. 

Take a look below at the returns of 5 major indexes in the 3rd quarter:

  • BarCap US Agg Bond: +3.14%
  • S&P 500: +14.24%
  • Russell 2000: +10.94%
  • MSCI EAFE (Europe): +19.96%
  • MSCI EM (Emerging Markets): +27.78%

Historically, October is a challenging month for the markets. However, November and December are often the best. We’ve been bombarded time and time again in 2017 with “All-Time High” headlines. We expect the “all-time high” headlines to continue through the end of the year. 

From our family to yours, we wish you a happy holiday season. And as always, thank you for your continued support and confidence.

Best,

Sloy, Dahl & Holst, Inc