{"id":6496,"date":"2020-01-14T10:22:08","date_gmt":"2020-01-14T16:22:08","guid":{"rendered":"https:\/\/schenkelberg.investments\/?p=6496"},"modified":"2020-01-14T10:22:26","modified_gmt":"2020-01-14T16:22:26","slug":"market-performance-update-4q-2019","status":"publish","type":"post","link":"https:\/\/schenkelberg.investments\/?p=6496","title":{"rendered":"Market Performance Update &#8211; 4Q 2019"},"content":{"rendered":"\n<p class=\"has-text-color has-very-dark-gray-color\"><strong>U.S. Versus <a>International<\/a><\/strong><\/p>\n\n\n\n<p class=\"has-text-color has-very-dark-gray-color\"><a>The S&amp;P 500, an index of large U.S. companies, posted a total return\nof 10.7% for the Fourth Quarter of 2019, and 29.7 % for the full year. U.S.\nstocks outperformed international for the quarter as measured by the Morgan\nStanley Composite Index EAFE, a representation of international stocks outside\nthe U.S. EAFE Total return for the Fourth Quarter of 2019 was 9.9%, and 23.5%\nfor the full year.<\/a><\/p>\n\n\n\n<p>U.S. stocks dominated international markets\nthroughout the year, gaining strength in the fourth quarter. U.S. economic\nstrength and consistency versus international markets continues to boost stocks.\nJ.P. Morgan Chase and Co. cites two interesting reasons for the constant\noutperformance of U.S. versus other developed international markets in recent\nyears. One, the tech sector is a much larger percentage of U.S. stocks than in\nEurope and Japan. The ongoing outperformance of technology stocks favors U.S.\nmarkets. Second, within sectors U.S. companies generally have higher\nprofitability than European and Japanese counterparts.&nbsp; <\/p>\n\n\n\n<p class=\"has-text-color has-very-dark-gray-color\"><a>U.S. stock domination versus the\nrest of the world has been significant since 2010. According to Bespoke\nInvestment Group, Inc. the S&amp;P 500 has achieved total return of 252% since\n2010, while the All World ex US index has returned 61%. However, the U.S. has\nnot always dominated the rest of the world. In the 2000\u2019s the rest of the world\nsignificantly outperformed U.S. S&amp;P 500 index. During the 2000\u2019s the\nS&amp;P 500 saw a total return of -9% versus a total return of 31% for the All\nWorld ex US index. If you believe in reversion to the mean it will likely be\nvery difficult for the S&amp;P 500 to continue such strong outperformance in\nthe next 10 years. <\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">&nbsp;<\/h2>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>U.S. Sectors<\/strong><\/h2>\n\n\n\n<p class=\"has-text-color has-very-dark-gray-color\"><a>Top performing U.S. sectors as reported by\nKoyfin.com investment performance software for the third quarter of 2019 by\ntotal return included Technology (17.4%), Health Care (16.1%) and Financials\n(14.0%). Laggards for the fourth quarter include Real Estate (-0.9%), Utilities\n(-0.4%) and Consumer Staples (2.8%). Investors strongly favored riskier\nsecurities in the fourth quarter indicating confidence that the strong economic\ntrends are expected to continue.&nbsp; This\nwas a sharp turnaround from the third quarter when interest rate sensitive,\nmore stable sectors like real estate and utilities outperformed.<\/a><\/p>\n\n\n\n<p>Top performing U.S. sectors as reported by Koyfin.com investment performance\nsoftware for the full year of 2019 by total return included Technology (52.6%),\nFinancials (32.1%) and Industrials (30.9%). Laggards for the full year include\nEnergy (10.6%), Materials (22.1%) and Health Care (23.1%). Throughout the year\neconomic indicators displayed strength in U.S. services while manufacturing\ndisplayed weakening growth trends. This theme played out in sector performance\nwith more service oriented sectors like technology and financials outperforming\nmore traditional manufacturing based sectors like energy and materials.<\/p>\n\n\n\n<p>Entering 2020 services are likely to continue their relative growth\nstrength versus manufacturing. However, stock prices are reflecting a lot of\nthis relative growth with services sectors priced at a higher multiple versus\nmore manufacturing based companies.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. Versus International The S&amp;P 500, an index of large U.S. companies, posted a total return of 10.7% for the Fourth Quarter of 2019, and 29.7 % for the full year. U.S. stocks outperformed international for the quarter as measured by the Morgan Stanley Composite Index EAFE, a representation of international stocks outside the U.S. [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[119,123],"tags":[],"class_list":["post-6496","post","type-post","status-publish","format-standard","hentry","category-market-commentary","category-market-performance"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p7kXxe-1GM","jetpack-related-posts":[{"id":6588,"url":"https:\/\/schenkelberg.investments\/?p=6588","url_meta":{"origin":6496,"position":0},"title":"Market Update &#8211; 4th Quarter 2021","author":"J.J. Schenkelberg, CFA","date":"January 12, 2022","format":false,"excerpt":"U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of 10.7% for the Fourth Quarter of 2021. S&P 500 performance was driven by strength in select stocks with large weights in the index. U.S. stocks significantly outperformed international again for the quarter as\u2026","rel":"","context":"In &quot;Market Commentary&quot;","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2022\/01\/image.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":6549,"url":"https:\/\/schenkelberg.investments\/?p=6549","url_meta":{"origin":6496,"position":1},"title":"Market Update &#8211; First Quarter 2021","author":"J.J. Schenkelberg, CFA","date":"April 12, 2021","format":false,"excerpt":"U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of 8.1% for the First Quarter of 2021. U.S. stocks outperformed international for the quarter as measured by the iShares MSCI EAFE ETF, a representation of international stocks outside the U.S. EAFE total return\u2026","rel":"","context":"In &quot;Market Commentary&quot;","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6538,"url":"https:\/\/schenkelberg.investments\/?p=6538","url_meta":{"origin":6496,"position":2},"title":"Market Update &#8211; Fourth Quarter 2020","author":"J.J. Schenkelberg, CFA","date":"January 10, 2021","format":false,"excerpt":"U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of 11.7% for the Fourth Quarter of 2020, bringing performance to 15.4% year-to-date in 2020. U.S. stocks outperformed international for the quarter as measured by the iShares MSCI EAFE ETF, a representation of international\u2026","rel":"","context":"In &quot;Market Commentary&quot;","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6678,"url":"https:\/\/schenkelberg.investments\/?p=6678","url_meta":{"origin":6496,"position":3},"title":"Market Update. 4th Quarter 2022","author":"J.J. Schenkelberg, CFA","date":"January 10, 2023","format":false,"excerpt":"IndexFourth Quarter 2022Year\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To-Date 2022S&P 5007.1%-19.5%Dow Jones Industrial Average15.3%-8.8%Russell 20005.8%-21.6%\u00a0\u00a0MSCI EAFE (International Index)17.7%-14.4%\u00a0\u00a0Barclays Aggregate Bond1.6%-13.0% Performance Source: Koyfin U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of 7.1% for the Fourth Quarter of 2022. U.S. stocks lagged international for the quarter as\u2026","rel":"","context":"In &quot;Market Commentary&quot;","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6623,"url":"https:\/\/schenkelberg.investments\/?p=6623","url_meta":{"origin":6496,"position":4},"title":"Market Performance Update. First Quarter 2022","author":"J.J. Schenkelberg, CFA","date":"April 12, 2022","format":false,"excerpt":"Performance Source: Koyfin U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of -5.0% for the First Quarter of 2022. U.S. stocks marginally outperformed international again for the quarter as measured by the iShares MSCI EAFE ETF, a representation of international stocks outside\u2026","rel":"","context":"In &quot;Market Commentary&quot;","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2022\/04\/image-5.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":6528,"url":"https:\/\/schenkelberg.investments\/?p=6528","url_meta":{"origin":6496,"position":5},"title":"U.S. Stocks Dominate","author":"J.J. Schenkelberg, CFA","date":"October 12, 2020","format":false,"excerpt":"Last quarter we discussed how the largest stocks in the Standard & Poor\u2019s 500 Index are dominating stock market returns, helping drive S&P 500 returns versus stocks in the rest of the index and other major indices. Apple and Amazon continued to outperform in the third quarter with total returns\u2026","rel":"","context":"In &quot;Market Commentary&quot;","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2020\/10\/International-v.-u.s.-093020.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2020\/10\/International-v.-u.s.-093020.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2020\/10\/International-v.-u.s.-093020.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2020\/10\/International-v.-u.s.-093020.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2020\/10\/International-v.-u.s.-093020.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2020\/10\/International-v.-u.s.-093020.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts\/6496","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6496"}],"version-history":[{"count":2,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts\/6496\/revisions"}],"predecessor-version":[{"id":6498,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts\/6496\/revisions\/6498"}],"wp:attachment":[{"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6496"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6496"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}