Quarterly Commentary is a quarterly view of the equities, fixed income and hedge fund markets from our Family Management specialists.
Despite the uncertainty of the US Presidential election, risk assets rallied sharply during the fourth quarter of 2020. Across domestic indices, the S&P 500, Dow Jones Industrial, and Nasdaq Composite rose 12%, 10.7%, and 15.7% respectively in the quarter. International and emerging markets performed even better with the MSCI world and MSCI emerging markets indices rising 14% and 19.6% respectively.
Stocks broadly advanced in the third quarter of 2020. The S&P 500, Dow Jones Industrial, and Nasdaq Composite gained 8.9%, 8.2% and 11.2% respectively during the period ending September 30th. Global markets advanced as well with the MSCI Emerging Market Index rising 9.6% and the MSCI World advancing 8.1%.
The second quarter of 2020 produced historic gains for the broad stock indices. The Dow Jones Industrial Index rose 18.5% during the quarter, the largest quarterly gain since 1987 while the Nasdaq rose 30.9% for its largest quarterly advance since 1999. S&P 500 closed the quarter up 20.5% for its best quarter since 1998.
US treasury yields were largely unchanged in 2Q of 2020. Yields from the 1-month tenor to the 2-year tenor hovered around 12-15bps. The 10-year UST yield stayed constant at 0.66%, while the yield on the 30-year UST rose 9bps to 1.41%. The Bloomberg Barclays Aggregate Bond index appreciated 2.9% in the second quarter. US High