What a Quarter!
Not often do we see the equity and fixed income markets both post losses ─ even small ones ─ in the same quarter. But that was the case last quarter, and the losses were significant: approximately 5% on the S&P 500 and Dow Jones indices, and over 9% on the Nasdaq. Canada’s stock market nevertheless posted a healthy gain of over 3% due to the heavy weighting of the commodities sector. But it was the exception.
The situation was even worse in the bond markets. A sharp rise in bond yields, which peaked in March, resulted in negative returns of around 7% on the bond indices. Conservative investors who held balanced portfolios of stocks and bonds in this period suffered sizeable losses.