Commentaries

INVESTMENT PERSPECTIVE OCTOBER 2017

The U.S. stock markets produced double digit returns year to date in one of the calmest bull markets in 25 years. The S&P 500 fluctuated more than 1% in only eight days versus an average of 50 per year since 1945. The stock market is steadily advancing to new highs due to robust fundamentals. Most importantly, earnings growth has improved with the S&P 500 operating earnings experiencing double digit gains the past two quarters for the first time since the fourth quarter of 2011. It is difficult to predict how long this trend will last. However, excessive caution appears unwarranted and we expect the favorable environment to continue with more investment success ahead. A summary of index returns for the year to date ending September 30 is as follows:

Dow Jones Industrials +15.5%
Russell 2500 +11.0%
MSCI EAFE +20.0%
S&P 500 +14.2%
NASDAQ Composite +21.7%
Wilshire 5000 +13.8%

INVESTMENT PERSPECTIVE OCTOBER 2017 (pdf)