Q3 2017 – Annandale Capital Quarterly Commentary
2017 is shaping up to be a great year for investors. We are only three quarters of the way through 2017, and US stocks have already returned 14.2%, well above their long-term average. Globally diversified portfolios have fared even better. International developed markets and emerging markets have returned 19.9% and 27.8%, respectively. Even fixed income investors have reason to cheer. US investment-grade bonds have returned 3.1%, despite the Federal Reserve hiking rates twice and telegraphing a significant reduction to its balance sheet. Given the level of returns to date, many investors are wondering what comes next.