3rd Quarter – Market Commentary

Markets Tip Their Hat to Central Banks

The S&P 500 gained 6.40% during the 3rd quarter fueled by continued low-interest rate policies among the worlds’ central banks. On September 6th, Mario Draghi, the President of the European Central Bank announced an open-ended, unlimited bond buying program with the hope of keeping borrowing costs under control for troubled countries like Spain and Italy. Seven days later, Federal Reserve Chairman Ben Bernanke announced a similar open-ended bond buying program for U.S. mortgage backed securities. The goal of the Fed’s program is to support the beginnings of a housing recovery and a more robust economic recovery.

The market responded enthusiastically to these programs, hitting new highs for the year. In our view, political uncertainty, economic realities, and company fundamentals may put pressure on stocks into year-end.


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The Canal Global Benchmark is a composition of indices weighted accordingly: 40% S&P 500, 20% MSCI EME, 15% MSCI EAFE, and 25% Barclays Aggregate Bond Index. We feel this more accurately characterizes the risk and return profile of a well-diversified passive investor

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