Skip to Content
Quarter-End Insights

Our Take on the Third Quarter

As the rally hits its seventh month, we take a look at the winners, losers, and places where value can still be found.

Mentioned: , , , , , , , , ,

Although the powers that be have yet to officially decree it, the third quarter will likely represent the end of the recession. A year after the collapse of Lehman Brothers sent credit markets into a tailspin, the economy seems to have finally found its bottom and is now trying to dig itself out of a deep hole. Huge challenges remain with respect to employment, debt levels, and deficits, but the worst appears to be over, and the market largely seems to have shrugged off any concerns. The Morningstar U.S. Market Index rose 15.7% over the last three months through Sept. 29, bringing the year-to-date return to 21.6%.

Small-cap stocks once again outperformed the broader market, rising nearly 22% in the quarter compared with 21% for mid-caps and about 14% for large caps. With 30%-plus returns for the year through Sept. 29, small caps and mid-caps are outpacing large caps' 18% return by a decent margin.

Jeremy Glaser does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.