Despite increased geopolitical tensions, the initiations of impeachment proceedings against President Trump and mixed economic data, the U.S. stock market ended the quarter in positive territory. For the quarter, the S&P 500 was up +1.7%. International stocks were down -1.1%, primarily due to a strengthening dollar, as the international benchmark was positive in local currency terms. Returns in the bond market were positive as interest rates decreased across the yield curve. Growth in the U.S. is loosing speed, and we have an inverted yield curve but it doesn’t necessarily mean that we are headed into a recession in the near term. That said, we feel being cautious is not a bad thing at this point in the market cycle.

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