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Here’s how ugly the third quarter was for stocks and commodities

October 1, 2015

There are some interesting charts comparing the different markets around the world as well commodities.

Click here to visit the original posting page.

Needless to say, September and the third quarter overall were tough for many investors.

“The third quarter of 2015 proved to be the weakest quarter for risk assets for some years and most market participants are probably glad to see the back of it,” wrote Jim Reid, global strategist at Deutsche Bank, in a Thursday note. “Indeed Q3 saw the poorest quarterly performance for the S&P 500 SPX, -0.89%   (-6.4%) and the Stoxx 600 SXXP, -0.44%   (-8.4%) since Q3 2011. It was also the worst quarter for the Nikkei NIK, +1.92%   (-14%) since 2010 whereas in [emerging markets] the Shanghai Composite SHCOMP, +0.48%   (-28%) and Bovespa BVSP, +0.06%  (-15%) posted their worst quarterly scorecard since 2008.

Reid breaks down the quarterly performance in a series of charts, including these looks at the third quarter in both local and U.S. dollar terms:

September on its own was pretty brutal, with 27 of Deutsche Bank’s 42 selected global asset classes ending the month with losses.

“In many ways, September picked up many of the unresolved issues that we left behind in August,” Reid wrote. The selloff in commodities and emerging markets gained more momentum on deepening recession fears that, in turn, raised more questions about the sustainability of global growth, he said.

Also read: Only 3 commodities have managed to escape 2015 carnage.

And if “macro themes” weren’t enough, microeconomic stories, including the Glencore GLEN, -0.58%  and Volkswagen VOW, +0.10% VOW3, -1.28% VLKAY, -1.83%  selloffs, amplified a weak end to an ugly quarter, he noted.

Year-to-date there isn’t much to cheer about either, Reid notes (see chart below).

Stocks are struggling to begin the fourth quarter but bulls might take some solace from historical data. BTIG chief strategist Dan Greenhaus notes that 2008 aside, any quarter since 1960 that saw stocks fall more than they did in the third quarter saw the S&P 500 rebound 80% of the time.*

Discussion
1 Comment
    Oct 01, 2015 01:05 PM

    Keep the music coming. The worse it gets, the more I line my pockets.
    I like big hair cuts. Short selling has never been more prosperous. Although
    the entire system is doomed to fail, its just knowing your winning because
    its all just a game anyway. Its all in the game and the challenge.

    Not always right, however I’m – NEVER WRONG -. Taking it to the bank too.