U.S. equities rebounded from a negative July and were strong across all the styles and market caps (S&P 500 +4.00%, S&P 400 MidCap +5.08%, Russell 2000 +4.96%). Small and MidCaps were the big winners for the month of August but it was the S&P 500 that ended the month at an all-time high. This raises the question — Is it time to take some risk off the table?
International markets were mixed as the MSCI EAFE ended August down -0.15% and the emerging markets were up +2.07%. Frontier markets cooled slightly in August (-0.90%) but are still up an impressive +21.20% year to date.
Treasuries rallied sharply in August as the 10-year Treasury yield plunged 21 basis points to end the month at 2.35%. The high yield sector recovered sharply to recoup all of its July losses (-1.33%) and more. The Barclay U.S. Corporate High Yield ended the month up +1.59%.