Third Quarter 2018 Investment Performance
The S&P 500 Index rose by 7.2% in the third quarter of 2018, its best performance since 2013. The Dow Jones Industrial Average rose by 9% while the technology heavy Nasdaq Index grew by 7.1%. All three indices closed within about 1% of their all-time highs. Much of the growth in the indices this year are due to the tax overhaul in 2017. The changes included a cut in the corporate tax rate. As a result, companies’ profits have been stellar in the first two quarters of 2018 and these profits are expected to remain strong through the third and fourth quarters as well. Two of the main concerns of the financial markets going forward are the continuing trade war with China as well as slowing growth in the emerging markets region of the world.