Overall, both stocks and bonds performed well in August and have performed well so far this year. As we head into the final month of the quarter, major factors like economic data, Federal Reserve decisions, and the upcoming Presidential Election could create more market volatility.
August got off to a rough start on disappointing job and manufacturing readings, as well as lackluster corporate earnings reports which led to a sharp market sell-off. However, strong retail sales, improving inflation, and better-than-expected 2Q GDP growth gave investors greater confidence in the economy, driving stocks higher. Bond yields also fell on dovish comments from the Federal Reserve nodding to interest rate cuts occurring at their September meeting. Bonds posted solid gains over the month.
International stocks outperformed US markets for the second month in a row, despite challenges like a surprise interest rate hike in Japan and ongoing conflicts in Ukraine and the Middle East. International stocks and bonds rose on cooling inflation data increasing the likelihood of rate cuts from global central banks.
| Index Performance | August | Year to Date | Trailing 12 Months |
| US Stocks (Russell 3000) | 2.18% | 18.19% | 26.14% |
| International Stocks (FTSE AW ex US) | 2.71% | 11.40% | 18.61% |
| US Bond Mkt. (BBgBarc Int. Gov/Cred) | 1.15% | 3.55% | 7.11% |
| Cash (ICE BofA ML 3-Mo T-Bill) | 0.48% | 3.58% | 5.48% |