During the fourth quarter of 2019, the Global Wealth Strategy portfolio produced a net return of 4.13%, bringing the 2019 net return up to 15.92%.
During the third quarter of 2019, the Global Wealth Strategy portfolio produced a net return of 0.32%, bringing the year-to-date net return up to 11.31%.
During the second quarter of 2019, the Global Wealth Strategy portfolio produced a net return of 3.02%.
During the first quarter of 2019, the Global Wealth Strategy portfolio produced a net return of 7.68%. We believe combination of an oversold market and changes in the U.S. Federal Reserve’s (Fed) outlook on interest rates helped all asset segments in the portfolio gain more than 5% for the quarter.
The theme of low volatility that headlined our investment commentaries over the past three years came to a sudden halt in the fourth quarter.
Some of the themes we witnessed in the second quarter continued into the third quarter. Inflation Hedges (Defensive Equities, REITs, and MLPs) extended the charge, resulting in its best quarter since Q1 2017.
S&P Dow Jones Indices and MSCI are making major changes to the Global Industry Classification Standards (GICS®) structure effective the close of business September 21. The Telecommunication Services sector will be expanded to include selected companies from the Information Technology and Consumer Discretionary sectors and will be renamed Communication Services.
What a difference a quarter makes. The results may have been relatively boring for the second quarter, but the change in market leadership was eye catching.
The year 2018 has been marked as an important one for fixed income markets. So far it has been a year filled with speculation and uncertainty. One of the big-ticket items -- the number of rate hikes that the U.S. Federal Reserve will conduct throughout the year.
What an interesting quarter. January was a continuation of 2017 producing positive returns with relatively low volatility. U.S. and International Equities were up as much as 7% in January. The S&P 500 recorded only 6 down days, with only 1 day down slightly more than 1%.