Market Update

Market Review – A Spooky October Adds to Concerns

By November 9, 2023November 10th, 2023No Comments

Markets across global equity and fixed income added a third month of decline in October. Technically, the S&P 500 entered a “correction”, defined as a pullback of 10% or more, since recent highs achieved in July. Intra-year declines of this magnitude are not uncommon and as demonstrated in the chart below, coincidentally align with the average intra-year decline on the S&P 500 since 1980. The recent struggles for fixed income are however less common. Should the Bloomberg U.S. Aggregate Bond Index close the year in negative territory it will be the first consecutive three-year decline since the creation of the aggregate index in the 1970s1. In particular, long duration bonds, as measured by the Bloomberg U.S. Long Gov/Credit, fell -4.5% over the month pushing its total return to -9.7% for the calendar year1. We believe several factors participated in driving bond prices lower.

Click here to read the full article