Best Quarter for Stocks Since Q4 2013

According to LPL Research, “Investors endured a flurry of trade headlines and emerging market turmoil in the third quarter, but that didn’t slow down U.S. stocks. The S&P 500 Index rose 7.2% during what has historically been the most volatile quarter of the year (7.7% including dividends), its biggest quarterly gain since the fourth quarter of 2013, its best performance in a third quarter since 2010, and the 11th gain in the past 12 quarters.”

Key takeaways include:

  • We’ve just wrapped up the best quarter for the S&P 500 Index since the fourth quarter of 2013, despite a variety of challenges.
  • Continued strength in the U.S. economy and impressive growth in corporate America were key drivers of stock market performance last quarter.
  • The third quarter was a challenging one for the bond market, with the Bloomberg Barclays Aggregate Bond Index flat over the three months.

To read more from John Lynch, Chief Investment Strategist, and Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial, click here.