It is said that equity bull markets “climb the Wall of Worry”. The third quarter of 2019 is an excellent example of exactly that. As the wisdom also goes, “there are decades where nothing happens, and weeks wherein decades happen”.
In looking back on the 3rd quarter of 2019, investors should have sympathy with this sentiment, having endured an extremely volatile quarter that saw another escalation of the US/China trade war, a synchronised collapse in global bond yields, sustained public disorder in Hong Kong, the biggest intra-day surge in oil prices on record, a spike in overnight repo rates, US recent IPO’s falling sharply, an equity market factor rotation and never-ending political drama in both Washington and London. The table below gives some context by providing the trading ranges – peak to trough – for several major global indices over the quarter.