Introduction

Most stock markets were lower in the fourth quarter, erasing gains from earlier in the year.

As the table below shows, U.S. stocks had a rough time in Q4 while bonds were up nicely. Emerging Markets and Real Estate Investment Trusts (REITs) were down, but not nearly as much as other stocks. Looking longer term, Bonds are showing their stability while U.S. stocks still hold the prize for being the best performer.

Asset Class14th
Quarter
12 Months5 Years
(annualized)
10 Years
(annualized)
U.S. Stocks (Russell 3000)
-14.30%-5.24%
7.91%
13.18%
International Developed (MSCI World ex U.S.)
-12.78% -14.09%
0.34%
6.24%
Emerging Markets (MSCI EM)
-7.47% -14.58% 1.65% 8.02%
Real Estate Investment Trusts (MSCI World REITs)
-4.53%-5.04% 6.27%9.82%
Taxable Bonds (Barclays U.S. Intermediate Gov/Credit )
1.65%0.88% 1.86%2.90%
Municipal Bonds (Barclays Municipal 1-10 Yr. Blend)
1.61%1.64%2.42%3.30%


References

1. Return data and charts are from Morningstar Direct.