We are more often frightened than hurt: and we suffer more from imagination than from reality. ~Seneca
I am an old man and have known a great many troubles, but most of them never happened. ~Mark Twain
The third quarter was not a good quarter for world stock markets—It’s nice to have it in the rearview mirror. Emerging market stocks fell nearly 18% in the quarter, International developed stocks fell 10% and U.S. large cap stocks were down 6%. No portion of the equity market escaped the decline.
However, as should be expected, diversification provided cushion to the equity market drop. Managed futures, bonds and REITs all produced positive returns in the quarter and hedge funds fell less than stocks.