Q4, 2019 and the last decade

Q4 provided a strong finish to the year with US stocks up 9.1%, international stock up 7.86% and emerging markets up 11.84%. Bonds were relatively flat in Q4 with US bonds up 0.18% and global bonds down 1.11%.

 

2019 was a great year all around for investors. The US stock market was up 31.02%, international markets were up 22.49% and emerging markets were up 18.42%. The US bond market was up 8.72% and global bond markets were up 7.57%. Don’t you wish every year was like this?

 

The US stock market had its best year since 2013 and US bonds had their best year since 2002!

 

For a detailed market overview covering Q4 and all of 2019, click here.

 

To provide a valuable perspective for investing, last year I compared 2017 to 2018, showing the difference a year can make. Now let’s look at the difference a decade can make.

 

Average annualized return:                                        2000-2009       2010-2019       Combined

US Stocks (S&P 500)                                                    -0.95%              13.55%                6.05%

International Stocks (MSCI EAFE)                               1.17%               5.5%                    3.31%

Emerging Markets (MSCI Emerging Markets)           9.77%              3.68%                  6.68%

US Bonds (Barclays US Ag. Bond)                               6.33%              3.74%                  5.03%

International Bonds (Barclays Global Ag. Bond)        6.49%              2.48%                 4.46%

 

This is a great reminder to align your investments with your objectives since even over fairly long periods of time (which I would consider 10 years to be) results can vary drastically. And of course, it is important to maintain broad diversification to help smooth out the ups and downs.

 

Advisory services offered through Arbor Point Advisors. Securities offered through Securities America Inc., Member FINRA/SIPC. Arbor Point and Securities America are separate companies. CA Insurance #0E88557

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Advisory services offered through Arbor Point Advisors. Securities offered through Securities America, Inc., Member FINRA/SIPC. Arbor Point Advisors and Securities America are separate companies. This site is published for residents of the United States and is for informational purposes only and does not constitute an offer to sell or solicitation of an offer to buy any security or product that may be referenced herein. Persons mentioned on this website may only offer services and transact business and/or respond to inquiries in states or jurisdictions in which they have been properly registered or are exempt from registration. Not all products and services referenced on this site are available in every state, jurisdiction or from every person listed. CA Insurance #0E88557

Advisory services offered through Arbor Point Advisors. Securities offered through Securities America, Inc., Member FINRA/SIPC. Arbor Point Advisors and Securities America are separate companies. This site is published for residents of the United States and is for informational purposes only and does not constitute an offer to sell or solicitation of an offer to buy any security or product that may be referenced herein. Persons mentioned on this website may only offer services and transact business and/or respond to inquiries in states or jurisdictions in which they have been properly registered or are exempt from registration. Not all products and services referenced on this site are available in every state, jurisdiction or from every person listed. CA Insurance #0E88557​

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