A Third-Quarter Mutual Fund Scorecard
Leaders and laggards among Morningstar Medalist funds.
After remarkably smooth sailing for six-plus years, many investors had been bracing themselves for volatility. They got it in the third quarter of 2015, when a broad swath of investment types--especially stocks--took a tumble.
Worries over global growth, especially in emerging markets, was the key catalyst for the sell-off. Although stocks had started to look shaky earlier in the quarter, the Federal Reserve's early-September decision to stave off an interest-rate hike due to fragile overseas economies was all investors needed to send them scurrying for the safety of Treasuries. High-quality bonds, both taxable and municipal, were rare pockets of strength in an otherwise-punishing market environment.
Christine Benz has a position in the following securities mentioned above: TBGVX. Find out about Morningstar’s editorial policies.