The Investor Quarterly Market Commentary and Investment Perspectives
The second calendar quarter of 2017 saw a continuation of global capital market advances, particularly in overseas markets, continuing the rotation away from the U.S. capital markets we noted in last quarter’s Investor Quarterly. More attractive equity valuations in European, Asian and Emerging Markets saw net capital flows headed that way, causing U.S. capital markets to underperform foreign markets for the first time in several years. Broadly speaking, while equity market returns globally were relatively strong in Q2 2017, both foreign and domestic equity markets saw a deceleration in their advances during the second quarter, when compared to the strong Q1 results. The FTSE All World Ex-U.S. Index (foreign stocks) gained +5.65% for the quarter ended June 30th (Q1 return was +8.30%), while here in the U.S., the S&P 500 Index advanced by just +3.09% over the same period (Q1 return was +6.07%) (1) .