US and international developed markets continued to perform well, and US markets did especially well in the past few months. Emerging markets stocks have performed unevenly over the past year, down slightly. Bonds struggle against a backdrop of concern about the potential for rising rates as the US economy moves ahead with recovery and the Fed contemplates the end to its extraordinary life-support measures which forced rates down.
Over the longer three-year period, US stocks were clearly the winners, providing total return around 45% for the total period.
There are continuing signs of improvement in the US economy, but more dysfunction in Washington is a dark cloud on the horizon. Unexpected world events can also have a sharp negative impact. (An uncertain election outcome in Italy prompted a severe but brief sell-off in stocks.)
