Newsletter Q2 2013

As investor complacency increased throughout the second quarter, significant volatility returned by the end of the quarter to the equity, bond and commodity markets. The sell-off was prompted by the Federal Reserve’s release of their June minutes “hinting” at a possible pullback on its unprecedented low-rate policy. Especially hard hit were bonds and dividend-paying stocks. Even with an equity correction of over 5% in the last five weeks of the quarter, most equity markets still managed to post positive returns with the major exception being emerging market equities.