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2017 Charts of the Week

Capital Markets Review (As of 09/30/2017)

Chart of the Week for October 6, 2017 - October 12, 2017

Capital market returns were positive among the asset classes shown in the third quarter ended September 30, 2017.

Capital market returns were positive for all asset classes and time periods shown above. Over the 1-year period, returns were greater than 15% in four of the six asset classes.

For the third quarter of 2017, global markets generally outperformed U.S. markets. Emerging Market Stocks posted the highest return at 7.89%, U.S. Small-Cap Stocks followed at 5.67%, and International Developed Market Stocks returned 5.40%. An improving outlook for global growth helped Developed Market Stocks. Strengthening commodity prices and a falling U.S. dollar helped Emerging Market Stocks. U.S. Small-Cap Stocks posted strong gains in September 2017 as discussions of U.S. tax policy were seen as positive. U.S. Large-Cap Stocks rose 4.48%, as strong corporate earnings, positive economic news, and strength in Information Technology stocks helped returns. In fixed income, U.S. High Yield Bonds rose 1.98%, as high yield rates generally fell. U.S. Bonds rose 0.85% during the quarter with large offerings by corporate issuers being well received by the market and corporate rates generally fell. Treasury rates generally rose slightly on shorter maturities and fell slightly on longer maturities.

In the chart above:

  • U.S. Bonds are represented by the Bloomberg Barclays U.S. Aggregate Bond Index.
  • U.S. High Yield Bonds are represented by the Bloomberg Barclays U.S. Corporate High Yield Index.
  • U.S. Large-Cap Stocks are represented by the S&P 500 Index.
  • U.S. Small-Cap Stocks are represented by the Russell 2000 Index.
  • International Developed Market Stocks are represented by the MSCI EAFE (Net) Index.
  • Emerging Market Stocks are represented by the MSCI Emerging Markets (Net) Index.

© Copyright 2017 ICMA Retirement Corporation, All Rights Reserved. This information is intended for educational purposes only and is not to be construed as investment advice or a solicitation to buy or sell securities. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed here. Past performance is not necessarily indicative of future performance.

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