In no way does this mean we're set for smooth sailing into year end. We're still in an environment of extremely slow global growth, we're all waiting to hear what the Federal Reserve will say and do next, and we're also just more than a month away from wrapping up what is quite possibly the most bizarre presidential campaign/election in history. One thing we know for certain; there will be a new president.
Listed below are returns of five major indexes, through the third quarter;
BarCap US Agg Bond -- 5.80%
S&P 500 -- 7.84%
Russell 2000 -- 11.46%
MSCI EAFE (Europe) -- 1.73%
MSCI EM (Emerging Markets) -- 16.02%
All five of our portfolios added measurable outperformance in the third quarter, with positions in Technology, Emerging Markets and domestic Small Cap stocks leading the way. We also continue to see strong performance from our Energy allocations. This is an area we may look to trim, soon, as oil prices approach a near-term target of $55/barrel. We're monitoring High Yield fixed income for the same; an opportunity to take profits and look for greater value. Our individual positions in Apple also jumped back on track, as the best performing stock within the S&P 500 for the third quarter rose 19%.
We have to expect volatility in the fourth quarter, primarily due to our upcoming election and continued developments from the Brexit vote. However, we believe it will ultimately be another quarter that trades on fundamentals and that will be good for stocks. We continue to favor our positions in Tech, Emerging Markets, Small Cap stocks and Energy. We also believe our positions in Financials are on the cusp of significant outperformance. As interest rates begin to rise, Financials will most likely benefit the most. This is also why we continue to shy away from interest rate sensitive areas like bonds, Utilities and Real Estate Investment Trusts (REITs).
Thank you for your continued confidence and support. As always, please feel free to contact us directly if there's anything we can do to help.