Q3 2020 | Investment Outlook
Q3 2020 Market Commentary
As the summer pulls to a close, a global reopening amidst the COVID-19 pandemic has led to a resurgence in case growth and fatalities. The final quarter of the year will witness economies fighting for the growth as the winter challenges the pandemic response, as well as the most contentious US election in recent memory.
Global Markets Performance
Per Morningstar, the US stock market, as represented by the S&P 500, finished up 8.93% on the quarter, building on an over 20% return last quarter and posting a net 5.57% on the year so far. Smaller US stocks1 rose less, up almost 5% for the quarter but are still down -8.69% this year. International stock markets2 and emerging markets3 performed similarly to domestic equity markets with returns of 6.25% and 9.56%. On the credit side, core bonds4 rose 0.62% and high yield bonds5 rose as well, up 4.71% for the quarter, impacted primarily by moderately tightened spreads. Emerging market (EM) bonds6 rose as well, up 2.28% on the quarter.