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DiMeo Schneider & Associates

Investment Manager Research | Market Commentary

October Market Commentary

November 8, 2019

Fixed Income
U.S. Treasury yields rose marginally across longer maturities with the ten-year rate finishing at 1.69 percent. Shorter maturities fell, steepening the yield curve. Although yields at the close of the month modestly changed, volatility was significant with the ten-year rate exhibiting more than a 30 basis point range.

Rising rates during the month muted domestic fixed income sector returns, despite the U.S. Federal Reserve’s third rate cut since July.

Unhedged international bonds outperformed hedged on U.S. dollar weakness. Emerging markets debt increased amid the risk-seeking environment.

Domestic equities posted positive returns on strong corporate earnings and positive economic data.

Growth broadly outperformed value during the month. Technology and health care led while utilities, industrials, and energy lagged.

International equities advanced as a dovish European Central Bank and Brexit extension quelled investor anxiety. Emerging markets gained as investors sought risk assets.

Real Assets
Commodity prices improved as precious metals rallied on expectations that the U.S. China trade war will continue beyond the 2020 election.

Domestic and international REITs generated positive returns influenced by U.S. monetary easing and low interest rates globally.

MLPs dragged sharply on interest rate volatility and general aversion to domestic energy stocks.

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