Investment Review - September 2019
- The major U.S. stock indexes declined in August. The Dow Jones Industrial Average fell by 1.7 percent, the S&P 500 was down 1.8 percent and the Nasdaq Composite finished the month down 2.6 percent.
- Treasury yields accelerated their three-month decline as uncertainty caused investors to seek safe havens. The 10-year Treasury yield fell to 1.5 percent, widening the gap between the three-month Treasury bill. The 10-year Treasury yield also fell below the 2-year rate, a phenomenon viewed by economists as an important recession prognosticator. The 30-year Treasury fell to a new record low.
- Currency outflows pushed the Chinese yuan below the key 7-to-the-dollar level for the first time since 2008. The U.S. labeled China a currency manipulator, signaling an escalation in the trade conflict.
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