Both stocks and bonds appreciated sharply in 2019. The key driver was the Federal Reserve’s sharp U-turn towards accommodative monetary policy.

The third quarter was a choppy one due to uncertainties with the ongoing trade war, Middle East conflict, the never-ending Brexit negotiations, and a presidential impeachment investigation.

U.S. stocks are up a remarkable 18.5% for the first 6 months of 2019—their best first half since 1997 This has been an unusually long U.

After a terrible 4th quarter, stocks opened 2019 by scoring their best quarter since the financial crisis. The rebound was predominately due to a U-turn in the Fed’s monetary policy and a positive turn in U.

From a return perspective, 2018 could largely be considered the year that wasn’t. Despite a few half-hearted rallies leading into the closing day, global financial markets ended December with the worst annual returns since the financial crisis.