Quarterly Market Overview - Q3 2024

Interest rate changes propelled Real Estate higher and the yield curve lower

3Q-2024 Asset Class Returns Based on Broad ETFs

Major Asset Class Returns for the Three months Ending September 30, 2024

• Real Estate was the best performing asset class in the quarter. An improving interest rate environment (see below) was supportive for the asset class.

• The index tracking a broad range of Commodities declined, on average. The drop in the price of Oil was a key contributor to the index decline.

• Small Cap stocks led domestic equities.

The table below depicts the same information as the above bar chart but shows the ETF securities used to represent each asset class.

Major Asset Class Returns for the Twelve (12) Months Ending September 30, 2024

• U.S. Large Cap stocks have the best 12-month return for the major asset classes. Measuring by the SPDR S&P 500 ETF, Large Cap stocks appreciated 35.6% over the past year.

• Real Estate is the second-best performing asset class due to a strong increase over the past six months. Real Estate is up 33.3% over the trailing 12 months.

• Commodities are the lone asset class with a negative 12-month return.

U.S. Index Returns with Growth & Value Styles

• Value beat Growth across the capitalization spectrum. This was most pronounced within Large Cap securities.

• Small Cap Value narrowly edged out Mid Cap Value for the top domestic style index in the third quarter.

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Interest Rates

U.S. Treasury Yield Curves

• The U.S. Treasury yield curve made a significant shift downward from the end of June.

• The US1M Yield had a month-end yield below 5% for the first time since March 2023. The US1M Yield ended September at 4.93%.

• The 10YR Yield dropped from 4.36% at the end of June to 3.81% as of September 30th.

Spread Between 10Y & 2Y U.S. Treasuries

• The 2/10 spread is now positive at the end of quarter for the first time since June 2022.

• The 10YR Yield ended at 3.81% while the US2YR Yield finished at 3.66%.

Disclaimer - this is not to be construed as investment advice or a recommendation to buy or sell any security. This is not meant to be indicative of any specific portfolio returns. Please see full disclosure on main blog page.