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.
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