US posts 4th worst quarter in 20 years
The US stock market suffered one of its worst ever results in the second quarter of this year, with the broad market Russell 3000 index losing 7.2 per cent in June alone to finish the quarter 13.1 per cent down.
The result was the fourth worst performance in the 23-year history of the index.
Only the third quarter of 2001, where the index fell by 15.6 per cent in a period which included September 11, the third quarter of 1990, where the index dropped by 15.2 per cent while Iraq was invading Kuwait, and the fourth quarter of 1987, when the index fell 23 per cent, faired worse.
The continuing woes of the US market were in fact comprehensive enough over the second quarter to ensure all of Russell’s 21 stock indexes finished in the red.
The narrower Russell 1000 and Russell Top 200 indexes both fell by even more than the Russell 3000, dropping by 13.5 per cent and 14.7 per cent respectively.
The small cap Russell 2000 Value index however performed relatively admirably, loosing only 2.1 per cent over the quarter. Other value indexes, including the Russell 2500 Value index, which fell by 3.5 per cent, and the Russell Midcap Value Index, which dropped 4.7 per cent, were also relatively strong performers over the period.
By comparison, Russell’s 2000 Growth Index, 2500 Growth Index and Midcap Growth Index fell by 15.7 per cent, 16.6 per cent and 18.3 per cent respectively, continuing the domination of value stocks over their growth counterparts in the US.
Recommended for you
Financial Services Minister, Stephen Jones, has assured the cost and time to enter the financial advice profession will soon be halved, as shadow treasurer Angus Taylor pledges to reach 30,000 advisers.
The positive results of the latest financial adviser exam have helped the advice profession reach 15,600 yet again, according to Wealth Data analysis.
Financial advice firms have told Adviser Ratings they are planning to increase their compliance spend by almost a third, including on enhancements to their cyber security which ASIC has identified as an enforcement priority.
The digital advice platform is officially launching into the financial advice sector, offering up its services to practices as a means of engaging with the next generation of clients.
