Global stocks declined 9.57% in September, finishing down 6.82% for the third quarter, and off more than 25% year-to-date. The three major U.S. indexes, the S&P 500, Dow Industrials, and Nasdaq Composite, all completed their worst first nine months of a calendar year since 2002.
August was rough for virtually all investors, as global stocks and global bonds were each down nearly 4% for the month. While equity investors are still up 3% over the past two months, stock market benchmarks remain down by nearly 18% year-to-date.
Global stocks bounced back with returns of nearly 7% for the month of July. Domestic stocks led the way with gains of over 9% for the month, with growth stocks outperforming their value counterparts. Global equity markets remain down by over 14% year-to-date.
After being in Covid-19 lockdown and receiving three rounds of stimulus payments, U.S. households were able to stash away a substantial amount of extra cash. According to Moody’s Analytics, from the beginning of the pandemic through the end of 2021, U.S. households had built up an additional $2.7 trillion in savings. Moody’s estimates that households have tapped about $114 billion of these extra savings through the first five months of 2022.
After plummeting 8.4% in June, global stock markets are now down by over 20% in just the first six months of 2022. For U.S. stocks, this marks the worst six-month start in over 50 years. Bond investors also suffered through double-digit losses, with the broad U.S. index of fixed-income securities recording its worst first half on record.
Global equity markets were exceptionally volatile in May, as traders struggled to evaluate a complicated economic backdrop. Stocks ultimately ended the month roughly flat, but remain down by double-digits year-to-date.
World stock and bond investors had a rough April, as markets struggled against multiple headwinds, including high inflation, rising interest rates, Covid spikes, and the ongoing war in Ukraine. Global equities and bonds declined during the month by 8% and 5.5%, respectively.
In a survey of 1,736 HR executives world-wide by consultant Mercer LLC, about 38% say they offer a phased retirement, more than double the 17.2% that did so before the pandemic. According to the Society for Human Resources Management, 23% of U.S. employers had these arrangements in 2021, up from 16% just five years earlier.
U.S. stocks rebounded by just over 3% in March, but still recorded declines of more than 5% for the quarter. For domestic stocks, the quarterly decline was the worst in two years and snapped a seven-quarter winning streak. Foreign stocks were flat for the month, but also remained down by over 5% for the quarter.
Stock markets closed down for the second straight month, with global equities off by 2.5% in February and 7.4% year-to-date. Overall, foreign stocks have outperformed U.S. stocks, while value stocks held up better than their growth counterparts. Russia’s invasion of Ukraine added geopolitical uncertainties to a global economy already grappling with supply constraints, soaring inflation, and pandemic related obstacles.
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