Global risk assets continued their 2019 ascent in April as major US stock market indexes reached new all-time highs.

Global risk assets excelled—despite ongoing concerns about slowing global growth and a spate of unresolved geopolitical issues.

Global equities continued their strong start to the year in February, and some markets experienced their best two-month start in decades.

Fourth quarter’s steep decline appeared overdone as markets rallied despite further downgrades to global growth expectations, softening corporate earnings results, and heightened geopolitical risks.

Volatility increased dramatically last quarter as tightening financial conditions, global growth concerns, and tempestuous political developments weighed on investor sentiment. Several major US and non-US equity indexes either approached or entered bear market territory amid the risk-off environment.

Global risk assets suffered significant drawdowns in October as capital markets experienced a fresh bout of volatility.

Global risk assets suffered significant drawdowns in October as capital markets experienced a fresh bout of volatility.

Developed markets equities and high-yield bonds led capital markets returns in third quarter, as US stocks outperformed on superior macroeconomic and corporate earnings growth. In stark contrast, emerging markets equities entered a technical bear market, underperforming developed markets equivalents as index heavyweight China lagged.

Most global risk assets faltered in August, with the notable exception of US equities, which almost single-handedly drove gains in developed markets stocks; in contrast, emerging markets equivalents suffered further losses.

Equities led the resurgence in risk assets last month, as US/EU trade tensions abated for now and robust global corporate results continued to reflect healthy underlying fundamentals.