Quarterly Market Review Q3 2023
MARKET REVIEW SELECTED MARKET INDICIES
RETURNS (%) Year To Date Global Stocks
US Stocks
Developed Intl Stocks
Emerging Market Stocks
Q3 2023
US Bond Market
12.4 9.4 6.0 3.4
-3.4
-3.3
MSCI All Country World IMI Index
Russell 3000 Index
-4.0 MSCI World ex USA IMI Index
-2.1 MSCI Emerging Markets IMI Index
-1.2
-3.2
Bloomberg US Aggregate Bond Index
Disclaimer: Non-deposit investment products are not FDIC insured and are not guaranteed by the bank or any government agency. No n-deposit investment products are subject to investment risk and may go down in value.
Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio. Market segment (index representation) as follows: Global Stocks (MSCI All Country World Index), US Stocks (Russell 3000 Index), Developed International Stocks (MSCI World ex USA Index), Emerging Markets Stock (MSCI Emerging Markets Index) and US Bond Market (Bloomberg US Aggregate Bond Index). All index return s are net of withholding tax on dividends. MSCI data © MSCI 2023, all rights reserved. Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Bloomberg data provided by Bloomberg
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MARKET REVIEW US EQUITY MARKET
RETURNS (%) Year To Date
US Large Core
US Large Growth
18.1
US Large Value
US Mid Core
US Mid Growth
US Mid Value
US Small Core
1.6
0.8
US Small Growth
Q3 2023 US Small Value
13.1 7.6
-3.3
-2.6
S&P 500
S&P 500 Growth
6.9
4.3
-4.1
-4.2
-3.2
S&P 500 Value
S&P 400
S&P 400 Growth
2.5 -0.8
-5.2
-4.9
-4.3
S&P 400 Value
S&P 600
S&P 600 Growth
-5.6 S&P 600 Value
Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio.
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MARKET REVIEW DEVELOPED INTERNATIONAL EQUITY MARKET
RETURNS (%) Year To Date International Core
International Growth
International Value
International Small
8.4
Europe
Q3 2023
Pacific
7.3
6.0
5.0
3.7
4.9
0.0
-3.5
-4.0
-7.9
MSCI World ex USA IMI
MSCI World ex USA Growth IMI
MSCI World ex USA Value IMI
MSCI World ex USA Small Cap
-2.4
-5.0 MSCI Europe IMI
MSCI Pacific IMI
Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio.
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MARKET REVIEW EMERGING MARKET EQUITY
RETURNS (%) Year To Date Emerging Markets
Emerging Market Growth
Emerging Market Value Emerging Market Small
13.7
Asia Pacific
Q3 2023
Latin America
12.9
6.7
3.4
2.9 0.3
-2.1
1.0
-0.1
-2.9
-4.0
MSCI Emerging MSCI Emerging Markets IMI Markets Growth IMI
MSCI Emerging Markets Value IMI
MSCI Emerging Markets Small Cap
MSCI Emerging Asia Pacific
-4.8 MSCI Latin America
Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio.
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MARKET REVIEW COUNTRY RETURNS THIRD QUARTER 2023 INDEX RETURNS
50% 40% 30%
20% 10% 0%
Australia South Africa Spain Kuwait Philippines Thailand Canada Peru Saudi Arabia Brazil Korea Switzerland Taiwan Mexico Portugal Finland Sweden France Ireland New Zealand Germany Greece Chile Hong Kong Poland Netherlands
Global
-20%
Turkey Egypt Norway UAE Malaysia India Israel Denmark Hungary Czech Republic Qatar Colombia Japan Belgium Singapore UK China Italy Indonesia Austria US
-10%
Past performance is no guarantee of future results. Country returns are the country component indices of the MSCI All Country World IMI Index for all countries except the United States, where the Russell 3000 Index is used instead. Global is the return of the MSCI All Country World IMI Index. MSCI index returns are net dividend. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio. Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. MSCI data © MSCI 2023, all rights reserved.
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MARKET REVIEW MSCI ALL COUNTRY WORLD INDEX WITH SELECTED HEADLINES FROM Q3 2023
1 Y EAR ( Q 4 2022–Q3 2 023) 380 Last 3 months
340 300
Q 3 2023
260 220 Sep 30
340
Dec 31
Mar 31
Jun 30
Sep 30
320
300
280 Jun 30
Jul 31
“Dow Notches Longest Win Streak since 2017”
“US Wages Rise More than 4% While Consumer Prices Increase 3%” “Turkey Agrees to Let Sweden In NATO”
“US New-Vehicle Sales Rise an Estimated 13% in First Half of the Year”
Aug 31 “Japan's Economy Grows at 6% Pace in Second Quarter”
“China Slips Into Deflation in Warning Sign for World Economy” “Fitch Slashes US Credit Rating to AA+ from AAA”
“S&P 500 Extends Winning Streak with Fifth Month of Gains”
Sep 30 30
“US Factory Orders Plunge in July after Four Straight Gains”
“US Stock Market’s August Losses Snap Monthslong Winning Streak”
“Wagner Chief Who Plotted Coup Presumed Dead in Russia Plane Crash”
“US Mortgage Rates Hit 7.09%, Highest in More than 20 Years”
“Bank of England Holds Rates Steady for First Time in Nearly Two Years”
“S&P 500 Suffers Biggest Monthly Loss This Year”
“Iran Releases Five Americans in Exchange for Frozen Funds” “Hollywood Studios and Writers Reach “UAW Strikes at Plants a Strike-Ending Owned by GM, Ford, Deal” Stellantis”
“Oil Climbs 1.8% to End at a 10-Month High”
These headlines are not offered to explain market returns. Instead, they serve as a reminder that investors should view daily events from a long-term perspective and avoid making investment decisions based solely on the news. Graph Source: MSCI ACWI Index (net dividends). MSCI data © MSCI 2023, all rights reserved. Index level based at 100 starting January 2000. It is not possible to invest directly in an index. Performance does not reflect the expenses associated with management of an actual portfolio. Past performance is not a guarantee of future results.
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MARKET REVIEW MSCI ALL COUNTRY WORLD INDEX WITH SELECTED HEADLINES FROM THE PAST 12 MONTHS
LO N G T ERM ( 2000–Q 3 2023) 400
300 200
S H O R T TE R M (Q 4 2 02 2–Q3 2023)
Last 12 months
100
360
0 2000
2003
2007
2011
2015
2019
2023
340 320 300
280 260 240 220 Sep 30
Dec 31 “China Braces for Deadly Covid Wave after Loosening Controls” “US Treasury Yield Curve Inverts to Deepest Level since 1981” “Sunak Wins Vote to Become UK’s Next Prime Minister after Truss Resigns”
“OPEC+ Agrees to Biggest Oil Production Cut since Start of Pandemic”
Mar 31
“US PPI Report Shows Producer Prices Rose, Pointing to Persistent Inflation” “CEOs Say They Expect a US Recession, but Most Think It Will Be Short” “Dow Closes 700 Points Higher on Signs of Slowing Wage Growth”
Jun 30
Sep Sep 30 30
“S&P 500 Starts a New Bull Market as Big Tech Lifts Stocks” “US Signals Support for Allies to Send Their F-16 Jets to Ukraine” “US Inflation Eased to 5% in March; Lowest Level in Nearly Two Years”
“Wagner Chief Who Plotted Coup Presumed Dead in Russia Plane Crash”
“S&P 500 Suffers Biggest Monthly Loss This Year”
“China Slips Into Deflation in Warning Sign for World Economy”
“US New-Vehicle Sales Rise an Estimated 13% in First Half of the Year”
“US Stocks Close Out Worst Year “Silicon Valley Bank Closed by Regulators;“Fed Holds Rates Steady but Expects More Increases” since 2008” FDIC Takes Control”
“UAW Strikes at Plants Owned by GM, Ford, Stellantis”
These headlines are not offered to explain market returns. Instead, they serve as a reminder that investors should view daily events from a long-term perspective and avoid making investment decisions based solely on the news. Graph Source: MSCI ACWI Index (net dividends). MSCI data © MSCI 2023, all rights reserved. Index level based at 100 starting January 2000. It is not possible to invest directly in an index. Performance does not reflect the expenses associated with management of an actual portfolio. Past performance is not a guarantee of future results.
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MARKET REVIEW
REAL ESTATE INVESTENT TRUSTS (REITS) THIRD QUARTER 2023 INDEX RETURNS
US real estate investment trusts underperformed non-US REITs during the quarter.
Ranked Returns (%)
Global ex US REITS
US REITS
Total Value of REIT Stocks
-4.48
-7.40
Period Returns (%) Annual ized
32%
68%
Global ex US $390 billion 285 REITs
US $844 billion 107 REITs
Asset Class
QTR
YTD
1 Year
3 Years
5 Years
10 Years
Global ex US REITS
-4.48
-8.16
2.30
-2.67
-3.22
0.41
US REITS
-7.40
-2.05
2.61
6.12
1.56
5.28
Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance doe s not reflect the expenses associated with the management of an actual portfolio. Number of REIT stocks and total value based on the two indices. All index returns are net of withholding tax on dividends. To tal value of REIT stocks represented by Dow Jones US Select REIT Index and the S&P Global ex US REIT Index. Dow Jones US Select REIT Index used as proxy for the US market, and S&P Global ex US REIT Index used as proxy for the World ex US market. Dow Jones and S&P data © 2023 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved.
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MARKET REVIEW FIXED INCOME 10 YEAR US YIELD CURVE OVER TIME (%)
CHANGE IN US YIELD CURVE (%)
6.0
10.0 9.0
7.0
4.0
Yield (%)
Yield (%)
8.0
1/3/2023 9/29/2023 2.0
6.0 5.0 4.0 3.0 2.0 1.0
0.0 1mo
3mo
6mo 1 Yr
5 Yr
10Yr
0.0 1990
30Y
1995
Years to Maturity
2000
2005
2010
2015
2020
Years
US YIELD CURVE (%)
5.55
5.60
5.55
5.61
5.53
5.46
5.03
4.80
4.60
4.61
4.59
4.92
4.73
1 Mo
2 Mo
3 Mo
4 Mo
6 Mo
1 Yr
2 Yr
3 Yr
5 Yr
7 Yr
10 Yr
20 Yr
30 Yr
Source: US Department of the Treasury. Information presented is as of end of quarter. Past performance is not a guarantee of future results. Indices are not available for direct investment.
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MARKET REVIEW FIXED INCOME
RETURNS (%)
Year To Date Marketwide
Treasuries
Investment Grade Credit
High Yield Credit
Q3 2023
Investment Grade Municipals
5.9
1.4
0.3 -0.3
-0.8 -1.9
Bloomberg US Aggregate Intermediate Bond Index
0.5
-0.7
-1.0
-2.6 Bloomberg US Treasury Bond Intermediate Index
Bloomberg US Corporate Bond Intermediate Index
Bloomberg US High Yield Bond Intermediate Index
S&P Intermediate Term National AMT Free Municipal Index
Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio.
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