Market Comments: As of September 2014
September was a poor month for the stock market. The S&P 500 lost 1.40%, though it is still up a solid 8.34% for the year. International and emerging market equities fared substantially worse, with the MSCI EAFE index down 3.84% and the MSCI Emerging Markets index dropping 7.41%. Therewasn’t a single event that triggered the broad decline, rather a confluence of factors are likely the culprit. Continued weakening of Eurozone countries’ economic data, perceived inadequacy of European Central Bank stimulus efforts, the apparent lack of efficacy of Abenomics in Japan, Ebola scares, Middle East turmoil, plus the pending end of quantitative easing here in the United States, could all be weighing on investors’ minds. Beneath the negative headlines though, the U.S. economy continues to move forward, evidenced by a final 2nd quarter GDP growth rate of 4.6%, solid manufacturing data, and further job creation. Global fixed income yields remain at low levels, as they have for most of this year.