Donald Trump’s victory in the recent presidential election has significantly increased uncertainty for investors.

A review of what's been happening in the third quarter of 2022 from a sustainable investment perspective.

A review of what's been happening in the second quarter of 2022 from a sustainable investment perspective.

The stock market continued the remarkable rally that began way back in the spring of 2020 through early September, but as summer turned to fall it ran into turbulence. September ended up being the worst month for the markets since March of 2020. The S&P 500 was essentially flat for the quarter, gaining just 0.6%. Bonds also saw volatility but essentially treaded water. The Barclays US Aggregate Bond Index gained a mere 0.05% for the quarter. Stock markets in the rest of the world did worse than in the US, with the MSCI ACWI Ex-US benchmark (comprising all significant stock markets around the world) falling 3.0%.

There were plenty of days when volatility reigned, but the financial markets had another strong quarter in April, May, and June. Unusually, investors made money in both stocks and long-term bonds during the quarter. The first quarter of the year saw the rally in equities continue even as interest rates in the US moved steadily higher. The S&P 500 gained 8.5% while the MSCI All Country World Index (ACWI) - representing all significant stock markets in the world - rose 5.5%. At the same time bonds also gained ground, in spite of concern over inflation. The benchmark yield on ten-year US Treasury bonds had nearly doubled to 1.74% from close to all-time lows in the first quarter but fell again to 1.45% on June 30th.