ClearLogic Market Reviews

Quarterly Market Review: 2017-Q3

Global stock markets again rose during the third quarter of 2017. This marks three straight quarters of positive stock market growth and two straight quarters of positive growth across both stocks and bonds. International stocks outperformed US stocks in Q3, as we saw last quarter.

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Quarterly Market Review: 2017-Q2

Global stock markets again rose during the second quarter of 2017. Additionally, both US and international bond markets were up, making the second quarter of 2017 positive across the board. Last quarter, we noted that international stock markets outperformed US stock markets, reversing a trend we had seen over the past few years. The reversal continued this quarter with international stocks returning about double what the US stock market returned.

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Quarterly Market Review: 2017-Q1

Global markets rose sharply this quarter and international stocks outperformed US stocks reversing the trend of the last seven years.

Only international bonds showed negative returns this quarter out of all of CLearLogic’s portfolio funds.  Our role as investment managers is sometimes more difficult when US stock markets perform very well ...

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Annual Market Review: 2016

For ClearLogic clients, 2016 was a rare year with all assets classes in their diversified portfolio finishing up.

Rarely does this happen. It remind us that we should not let the news – political, economic, or global dictate our investment approach. Politics and even economies are not as correlated to financial markets as most think.

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Quarterly Market Review: 2016-Q4

The 4th quarter market returns below may surprise you. Here in the U.S., Donald Trump’s victory dominated the news. In the financial news, the unexpected rise of the markets post-Trump victory was the top story. But as you can see below, only the U.S. stock market increased. All other markets in a diversified portfolio decreased, and some quite substantially.  

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Quarterly Market Review: 2016-Q3

As is often the case from quarter to quarter, a different stock asset class led performance returns this quarter: emerging market stocks. International Developed stocks outperformed US stocks for the first time this year. Global Real Estate has been the top performer over the past two years, but had its worst quarterly performance since the second quarter of 2015 and was the only asset class with negative returns. These are all good examples of why we do not chase performance or try to forecast asset class returns.

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Quarterly Market Review: 2016-Q2

Despite another volatile quarter, capped by the Brexit decision in late June, stock and bond markets once again had a positive quarter. In fact, the chart below looks almost identical to the same chart in the first quarter. Global Real Estate outperformed all other asset classes again in the second quarter, and International Developed stocks were the only asset class to provide negative returns.

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Quarterly Market Review: 2016-Q1

2016 started with the worst opening week in stock market history. January’s second week wasn’t much better, but markets bounced back throughout the quarter, ending in gains for most stock markets. The swoon and subsequent rebound was just another recent example of how quickly markets can turn. We do not know anyone that thought in January that the first quarter would end with positive returns; yet, they did for all major asset classes, except for international developed stocks.  

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Quarterly Market Review: 2015-Q4

Global markets bounced back in the fourth quarter after a terrible third quarter. US stocks once again led the rebound, up over 6%. For the year, US stocks were flat, but that exceeded International Developed and Emerging Market stocks, where returns were negative for the second year in a row. Commodities experienced its second year in a row of double-digit declines as well. Bonds were relatively flat for the quarter and the year.  

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Quarterly Market Review: 2015-Q3

During the 3rd quarter, global stock markets experienced their worst returns since 2011. Emerging Markets stocks, International Developed stocks, and Commodities all experienced double-digit declines. Bonds were up modestly for the quarter, as is often the case in periods when stocks experience significantly negative returns.

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Quarterly Market Review: 2015-Q2

Even though terrorism in Europe, the current political landscape in the US and other countries, as well as nuclear threats from North Korea gave us reason to believe markets should be down, that was not the case.

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Quarterly Market Review: 2015-Q1

International markets outperformed US markets during quarter. Global Real Estate (REITs) continued their strong returns from last year with another solid quarter. Bonds once again chugged along with small gains, despite all of the market’s worries about rising interest rates in the U.S.

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Quarterly Market Review: 2014-Q4

U.S. equities once again performed better than international markets, showing positive gains, while international equities were significantly negative. The dollar appreciated against most currencies, negatively impacting international returns. Global REITs had higher returns than most asset classes in the fourth quarter, outperforming all other general indices. Bond markets continued their impressive march forward, despite continual pundit predictions to completely avoid the asset class.

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Quarterly Market Review: 2014-Q3

In contrast to October’s volatility, the broad US stock market was flat during the third quarter, helped tremendously by large cap stocks. Small cap US stocks were strongly negative. International stock markets and real estate reversed course from the previous two quarters, providing negative returns as well. Both US and International bonds continued to provide positive results. The much anticipated and discussed bursting of the 30-year bond bubble definitely did not occur. Long-term government bonds, which all the experts feared were in the most danger this year from Fed actions, are up 13.6% year-to-date.

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Quarterly Market Review: 2014-Q2

Equity markets led by emerging markets once again posted positive returns for the quarter. This was the first quarter emerging markets outperformed developed markets since the third quarter of 2012. REITs outperformed equities for the second consecutive quarter. As we mentioned in our 4th Quarter 2013 letter, emerging markets and REITS were the two asset classes that underperformed in 2013, but we described why we stay invested in them. So far in 2014, this discipline has been rewarded. Finally, both U.S. and International Bonds had their second consecutive positive quarter after their 2013 losses.

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Quarterly Market Review: 2014-Q1

US REITs rebounded 7% in the first quarter after declining in Q4 2013. Equity returns were mostly positive but lower than they were during much of 2013. Both U.S. and International Bonds rebounded from their 2013 losses. Finally, while not shown in the chart below, Commodities rose 7%, led by agricultural commodities, such as coffee, hogs, corn, and wheat.

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