*by Kevin Slater, CEO, Lead Advisor, CFP®*

We are long-term investors at SoundView. Each quarter we share how the various major indexes have performed year-to-date to help clients understand the drivers behind their portfolio returns.

This year has generally been positive for large-cap stocks and negative for bonds.
U.S. large-cap equities continue to lead the pack; international equities are also performing positively, and U.S. small-cap stocks are experiencing a slight decline.

What is hidden in this chart? The 3rd quarter was negative for virtually every asset class. Bonds were pummeled as the market began to believe what the FED was saying, and inflation persists. But even that doesn’t tell the whole story. If you bought very short-term bonds, you have done just fine.

We anticipate increased volatility in the markets as longer-term interest rates continue to rise, and equity markets determine who will benefit and who will be adversely affected by the higher rates.

While we do not engage in market timing, we may make some year-end trades to effectively manage client taxes and adjust the risk level in portfolios.