Review & Outlook

Third Quarter 2018

Executive Summary

October 15, 2018

John Augustine, CFA, Chief Investment Officer

Strong Economy, Mixed Markets

In this piece a quarter ago, we noted that we were experiencing a “strong economy, flat markets.” As you can note from above, we slightly changed that title for the third quarter. 

Stocks, particularly domestic stocks, showed some signs of life in the third quarter, led by U.S. large cap stocks. The S&P 500 saw a total return of 7.7% in the third quarter, which was its best quarterly performance since Q4-2013. Even larger companies, as measured by the S&P 100, returned nearly 9%. 

Going into the third quarter, it was small and mid-cap stocks that were leading to the upside. That changed in September, as the U.S. Dollar rolled over in value and corporate profit growth continued to surpass estimates for the S&P 500. However, they still had respective 3% and 4% returns in the quarter, while overseas stock indexes continued to lag. 

What did not change in the third quarter was the drift higher in interest rates. The yield on the U.S. 2- and 10-year treasury notes are now both higher than the year-over-year rate of consumer inflation for the first time since 2015. In addition, the Fed lifted its Fed Funds rate for the 8th time in the past three years, and is expected to do so several more times through 2019.

Read full report (pdf)

Huntington Private Bank® is a team of professionals dedicated to delivering a full range of wealth and financial services. The team is comprised of Private Bankers, who offer premium banking solutions, Wealth and Investments Management professionals, who provide, among other services, trust and estate administration and portfolio management from The Huntington National Bank, and licensed investment representatives of The Huntington Investment Company, who offers securities and investment advisory services. Huntington Private Bank® is a federally registered service mark of Huntington Bancshares Incorporated.

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