Our Take on the Second Quarter
All eyes were on central banks as volatility returned to both the stock and bond markets.
Volatility returned this quarter in both stocks and bonds as fears about central-bank actions across the globe made investors increasingly skittish. Despite some big swings in the market, the broad-based Morningstar US Market Index rose 3.2% during the last 13 weeks.
The Federal Reserve's next move was under intense scrutiny throughout the quarter. In May, testimony from chairman Ben Bernanke and minutes from an earlier Federal Open Market Committee meeting raised fears that the central bank was on the brink of slowing down its purchases of mortgage-backed securities. Worries about this so-called tapering intensified in June after the bank's policy statement revealed the Fed raised its projections of economic growth and said that it could begin taking its foot off the accelerator as early as the end of this year. The focus on the Fed's potential tightening sent bond markets into a tailspin. The yield on the 10-year Treasury moved from 1.61% at the beginning of May all the way to 2.60% in June, before pulling back slightly to end the quarter around 2.50%.
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:
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.