Market Commentary

Market Commentary

The major benchmarks we track produced positive total returns for the second quarter of 2018.

  • The MS World Equity Index increased 1.93%.
  • The Balanced Index of 60% MSCI World Equity and 40% BC US Aggregate Bond increased 1.09%.
  • The Conservative Index of 40% S&P 500 and 60% BC US Aggregate Bond increased 1.27%.

Domestic equities produced positive total returns, while International equities and global bonds generated negative total returns during the second quarter.

For the next twelve months, we are projecting that global equities will produce normalized positive annual total returns and fixed income total returns will be nominal or negative. We are favoring domestic equities over international equities and fixed income securities. Our fixed income policy is emphasizing short to intermediate term investment grade bonds.