Market Commentary

Stocks around the globe rallied sharply in October, helping make up for losses experienced during a volatile Q3. In the U.S., large cap stocks returned over 8%, while mid and smaller cap stocks returned 5-6%. Turning abroad, developed international and emerging market stocks were both up over 7%. On the year, both domestic and international developed stocks are back in positive territory on the year. Growth stocks again trumped value stocks, further extending their outperformance year to date. Core investment grade bonds were flat during the month, with strength in corporate credit offset by a sharp uptick in short-term interest rates.

On November 2, 2015, President Obama signed into law the Bipartisan Budget Act of 2015, legislation that raises the federal debt limit and establishes the framework for a two-year budget deal. The legislation, needed to avoid an impending default on U.S. debt, also contains multiple unrelated provisions, including an elimination of two Social Security retirement benefit claiming strategies and a provision to prevent a significant increase in Medicare Part B premiums for some.