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Insights > 2019 Q3 Market Summary | Consumer Confidence Remains Strong

2019 Q3 Market Summary | Consumer Confidence Remains Strong

By Generational Wealth Advisors

2019 Q3 Market Summary

During third quarter, US equities outperformed non-US developed markets and emerging markets. In the US, value stocks outperformed growth, but the opposite was true for non-US and emerging markets. Small cap stocks outperformed in non-US developed markets but lagged in the US and in emerging markets. REITs outperformed equities in the US and internationally.

US interest rates declined in the third quarter, with the yield on 10-year treasury notes falling to 1.68%. This trend was consistent with decreasing rates in most developed markets. Short and intermediate-term nominal rates are negative in Japan and across the entire yield curve in Germany.

Lower interest rates are generally supportive of stocks, since they increase the present value of a firm’s future cash flows. At least for now, the US housing market remains strong, with lower rates and increased refinancing that should create more consumer spending power. Consumer confidence remains strong and high yield credit spreads are well contained.

On the other hand, corporate profits are weakening, with global earnings revisions remaining negative. S&P 500 companies with large global revenue exposure are expected to report a year-over-year decline in revenues due to trade concerns. Perhaps most worrisome, manufacturing data shows declining activity. However, most observers attribute this to uncertainty tied to trade friction and not a lack of consumer demand - yet.

We have been focused on risk in client conversations for the past year and we continue to believe that maintaining a diversified portfolio, both across asset classes and factor premiums is extremely important. Recessions are a normal part of the business cycle, but timing them is almost impossible. By being systematic and disciplined about maintaining a portfolio that is within your risk tolerance and that supports your financial planning goals, you can weather most storms. As always, we urge you to discuss this with your advisor - contact us.

View our Q3 2019 Market Review.

J. Brent Everett
Chief Investment Officer

We thank you Eric and Generational Equity making our dream come true.
Larry Moore, Owner, A Company Portable Restrooms
I would like to thank you and your firm, Generational Equity, for being our valued advisors in our journey.
Bil MacLeslie, CEO, ipHouse
I wanted to write you a quick letter to express our appreciation and our delight on the outcome of helping us through the process of our recent sale. We are very happy with the end result, and are very happy to be able to move forward with all of our future growth plans.
Terry D. Wickman, President, Keytroller
I must say that I have never worked with a more driven, competent and focused individual as Don Ho.
Jay Dinnison, Owner of Sharpe Mixers
Generational Equity’s assistance was invaluable in compiling and marketing our business.
Bil MacLeslie, CEO, ipHouse
The help you provided us during each step of this process made us feel very comfortable and confident we were selecting the right approach to transition our Company.
Andy Graham, Vice President, Modern Heating & Plumbing
Greetings Mike. Thank you for the captivating and compelling presentation you made at the Phoenix presentation last week. Over many years in business yours was the most informative and well-presented presentation, on any subject, that I have ever attended! Your energy and enthusiasm combined with your concise and captivating support of your positions with easily understood examples and data was compelling.
Pete L.
Thank you again for all your guidance and support. Any company will achieve what they intend, if they have you on their team!
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
Michael worked tirelessly, He followed every lead meticulously and urgently to make sure nothing was missed.
Robert Evans, President and CEO of Mealtracker Dietary Software
Generational Equity educated and informed us – so that we could be on the upside of a good decision (to sell).
Bil MacLeslie, CEO, ipHouse
Your wisdom and experience were invaluable to me during this once-in-a-lifetime transaction.
Ralph Noblin, President of Noblin & Associates
We are extremely pleased with the way Generational Equity handled the sale of our company. Your associates, Tom and Chris, did an outstanding job of getting us (me) through the process.
Michael J Polarek, President, Paragon Packaging
Thanks again Phil and feel free to have a future client call me if they would like a referral. You are a true professional!
Andy Graham, Vice President, Modern Heating & Plumbing
The process was much more involved than I expected and your help, experience and advice was a big factor in making the negotiations go as smoothly as possible.
Terry D. Wickman, President, Keytroller
We knew it would be a difficult task to have someone really understand our business and our market, prior to researching a possible buyer, so it was imperative that we found someone of your caliber, with definite proven experience in this area.
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
I quickly recognized that Don was working for Sharpe Mixers above all else, and held our interests above others.
Jay Dinnison, Owner of Sharpe Mixers
We will highly recommend Generational Equity and Musa Jagne to any business owner about to embark on the same process.
Karen S. Williams, CFO, BW Manufacturing
I couldn’t have asked for a better team than Michael and Deborah. We couldn’t have done it without them.
Robert Evans, President and CEO of Mealtracker Dietary Software
We were happy to see the interest in our company and what we cherished has not just a valuable company but an important company to the communities we served in.
Larry Moore, Owner, A Company Portable Restrooms
Tom Staszak is one of the most professional people I have dealt with in my last forty years of business. You’ve got a great group of people and you have built a truly professional organization.
Michael J Polarek, President, Paragon Packaging
Bruce and I wanted to take this opportunity to thank Generational Equity for assigning Musa Jagne to our transaction. In Bruce’s words, “Musa did one hell of a job for us!”
Karen S. Williams, CFO, BW Manufacturing
We are very happy with the end result, and are very happy to be able to move forward with all of our future growth plans.
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.