The⁤ third ⁢quarter of 2024⁢ proved to be unexpectedly robust, with⁣ most equity and ‍fixed⁢ income markets delivering ⁤impressive returns. Traditionally, the third quarter is the weakest period of the year, particularly September; however, this year many indexes recorded their‌ strongest performances.

Canadian stocks showed remarkable strength in Q3, with the S&P/TSX Composite Index rising by +10.5%, bringing its year-to-date return to +17.2%. The S&P/TSX Small Cap Index also performed well but lagged slightly​ behind​ at +7.8% for the quarter. In contrast, ⁤U.S. stock ⁣market indexes exhibited ⁣more subdued growth; the S&P 500 increased by +5.9% during Q3 (+22.1% YTD). The tech-heavy Nasdaq Composite Index had its weakest performance this year with a mere +2.6% gain for the quarter (+21.2% YTD),‍ while small-cap stocks represented by the Russell 2000 Index rose by +8.9% (+10.0% YTD).

EAFE stocks (Europe, Australasia, and Far East) remained flat for a second⁢ consecutive quarter but have risen by +9.4% so far in 2024. European equities were lackluster as well, gaining only +1.2%, while Japan’s Nikkei 225 fell -2.8%, although ⁢it still boasts a positive return of +15% for the year to date.

Emerging market equities continued their upward trajectory with a gain of +5.7% in Q3 (+15.8% YTD). This may indicate that investors are‌ starting to recognize attractive valuations within ​this sector.

The Bank of Canada’s decision to cut ⁣interest rates by 0.25% in both July and September provided significant‌ support to interest-sensitive sectors‌ during Q3; consequently, the FTSE Canada Universe Bond Index gained +4.7%, now showing a positive return for 2024 at ‍+4.3%. Similarly, the FTSE Canada Short Term Bond‍ Index rose by +3.4%, yielding an overall increase of +5.% thus far this year.

U.S⁤ fixed income markets outperformed expectations following an unexpected rate cut from the U.S Federal Reserve—downward adjustments totaling 0 .5 % announced during⁢ their September meeting led to strong performances across Bank of America (BoA) indexes: ​up+6 .4 %for ICE BoA AAA Corporate Index and+5 .7 %for ICE BoA BBB Corporate Index . Riskier ⁤high-yield indexes also thrived ,with ICE BoA CCC Corporate index climbing+11 .6 %,and US High Yield Master II increasing+5 .3 % .

Real ​Estate‌ Investment Trusts (REITs) emerged as one of Q3’s top beneficiaries from interest rate cuts ,with S&P / TSX Capped REIT index⁤ surging+23 .2 %, marking its best quarterly performance over fifteen years⁣ ,thus turning around its earlier negative trend into positive territory(+14 ‍.9 %) ‍compared against -6 ​.7 %at end second-quarter .

Conversely ‌,oil prices faced challenges ‍losing -16 .4 ⁢%,resulting ⁢in an overall​ decline (-49%) throughout ​current calendar-year ;the‍ diversified Bloomberg Commodities index dipped slightly (-08%),as gains elsewhere‌ offset oil ​price ‌drops .

ModernAdvisor portfolios experienced ⁤favorable outcomes due largely attributed strong returns across both fixed-income assets ⁤& equities throughout period under review .

!Q3 Portfolio Performance
!high-interest savings portfolio yielded a return of +1.1 ⁤ %in Q.32024, accumulating +34.0* %year-to-date.

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