Once in a Decade Opportunity to Diversify Away From the “Magnificent Seven”

Major Indices Post Losses in Q3 2023.

Amid higher for longer messaging from the Federal Reserve, rising longer-term US bond yields, and renewed inflation worries coupled with ascending oil prices, all three major US stock market indices were down in Q3. US small-caps (-4.9%) were among the worst performers, followed by international developed equities (-4.7%) and US mid-caps (-4.2%). Bonds were also down as investment grade corporates fell 4.7%, 7-10 year US Treasuries declined 4.5%, and municipal bonds decreased 3.3%. Commodities produced mixed returns as both crude oil and broad-based commodities were up (+27.2% and +4.7%, respectively) while gold and silver were down (-3.8% and -2.6%, respectively).