Market Index Returns August 2019

For the month of August, risk assets generally sold off due to slowing global growth, contracting manufacturing indexes, rising trade tensions between the United States and China, and rapidly falling interest rates. The MSCI All-Country World Index declined -2.37% and the S&P 500 Index fell -1.58%, whereas the Barclays Aggregate Bond Index rallied +2.59%. The yield on the ten-year Treasury bond fell from approximately 2% at the end of July to 1.45% at the end of August. The VIX “fear” index rose from a complacent 12 on July 24 to a high of 24.6 on August 5th. Much of this risk off sentiment was triggered after the U.S. and China imposed additional tariffs on a combined $375 billion of imports. Additionally, investors are increasingly concerned we are headed towards a global recession.

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