Strong economic and corporate fundamentals fell into place in the third quarter, triggering an impressive rally in stock prices. Annualized GDP growth exceeded 4% and corporate earnings (abetted by tax reform) grew over 20% for a second consecutive quarter. Markets also took a more measured view of the trade concerns, in spite of an escalation in tariffs. By quarter’s end, most major stock indices had registered new all-time highs.

The Growth Equity strategy from Meritage Portfolio Management was awarded the “Top Guns U.S. Equity Universe” ranking within the Informa Investment Solutions (IIS) PSN manager ranking database. This well-respected quarterly ranking is widely used by institutional asset managers and investors. PSN is the longest-running investment manager...

Broad equity markets posted positive returns in the second calendar quarter, rebounding from the modest declines of Q1. While the news flow regarding continued economic growth and strong corporate earnings was generally positive, the market struggled for direction amidst longer-term uncertainties regarding the duration of the current economic cycle. As we discussed in our note last quarter, this is consistent with a market in transition, as the outlook for better growth also signals the latter stage of an economic cycle that now exceeds nine years.

“Every company today is a technology company – they are either in the technology business or they are becoming more dependent on technology to help run their business.” Len Mitchell, Meritage Sr. Portfolio Manager The advancement in technological capabilities over the past ten years has been...

The Growth Equity strategy from Meritage Portfolio Management was awarded the “Top Guns Large Cap Universe” within the Informa Investment Solutions (IIS) PSN manager ranking database. This well-respected quarterly ranking is widely used by institutional asset managers and investors. PSN is the longest-running investment manager database...

It was the third quarter of 2015 that stocks last turned in negative returns, triggered by recession fears and collapsing oil prices. While this quarter’s market decline of 1% - 2% came amidst stronger economic trends and positive earnings news, the modest loss masks a 10% correction from the January highs.

A strong fourth quarter gave stocks their best year since 2013.  Broad equity indices hit multiple new highs as volatility remained historically low through year end.  Feeding off the momentum that began in late 2016, the S&P 500 finished the 2017 calendar year without a single down month for the first time since 1970.

Bond returns were generally positive for the year as longer-term interest rates ended the year somewhat lower compared to the beginning of 2017.  Shorter-term rates moved noticeably higher in the fourth quarter, most likely in anticipation of additional rate hikes from the Federal Reserve in 2018.