Q3 2019 Market Update

Market Update: Q3 2019

I’ve written and published quarterly market updates religiously since launching Three Oaks Capital Management back in 2014.  At first I had physical newsletters printed out on six thick pages of card stock, and mailed them out to clients and other contacts.  Shortly afterward I began adding the commentary to www.3oakscapital.com, and started calling the distribution “Investment Insights”.  A few years after that I abandoned the print version, and distributed the commentary solely through the blog.

Writing a market update at all is starting to become less common in the financial planning community.  Many of my peers, colleagues, and friends prefer NOT to publish or distribute market updates at all, as they believe it diverts their clients’ attention away from long term & consistent strategies.

The market updates I’ve written have evolved quite a bit over the years, but they’ve received a good amount of positive feedback all along.  Clients like to know my take on the markets, and feel comfortable knowing that I have my eye on them.  Other readers and contacts seem to enjoy the content too.

This quarter I am making a minor change to the format of Investment Insights.  While I plan to continue producing them, starting this quarter all new editions will live on Above the Canopy as opposed to Three Oaks Capital’s blog.  We have other changes to the blog, format, and site forthcoming, and this change makes the most long term sense.  (Hint: there is a podcast on the way).  But from here on out, you’ll find market updates on this site as opposed to Three Oaks Capital’s.

Speaking of this quarter’s edition, we have a number of items to touch on.  First, the Federal Reserve reduced short term interest rates in both of their third quarter meetings.  There continues to be a lot of trade uncertainty globally, inflation remains low, and there continues to be some weakness in global economic growth.  This is the first time the fed’s reduced rates in ten years – the last time being December of 2008, when it cut rates from a range of 75 – 100 basis points to 0 – 25.

Elsewhere, US equities had another strong quarter, value shares outpaced growth in the small cap space, and the yield curve in US rates inverted for three days in August.  Read on for more details.

 

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