Markets continue to make gains following the April lows. International equities continue to outperform year-to-date, supported by the weakening of the dollar.

International markets have provided the highest returns this year, with the MSCI International Index gaining 19.46% and the MSCI Emerging Index up 15.57%. Portfolios that were globally diversified experienced less volatility and higher returns YTD.

International markets and bonds have provided the most stability this quarter, with the MSCI International Index gaining 6.35% and bond prices rising due to falling interest rates. Portfolios that are diversified across asset classes and geographies have held up the best.

A recent study reviewed the 2024 S&P 500 return estimates from 20 prominent banks and asset managers, made at the end of 2023. The closest estimate was off by 12% and the median prediction missed by 23% versus the actual return. Be cautious with forecasts for 2025.

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