Almost all financial assets were hammered in the third quarter

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smash the watermelon hammer


AP Photo/Carlos Osorio


It’s the first day of October and with the third quarter over, a lot of analysts are taking a moment to look back, shudder a bit and appreciate how good the three months from July to September have been. horrible for investors.

It kicked off with the Greek crisis, saw a sell-off in emerging market equities, not to mention “Black Wednesday”, when a particularly bad day in Shanghai spread around the world.

Despite the US Federal Reserve’s decision not to raise rates in September, even US equities underperformed.

There was money to be made, especially in European government bonds, and some US bonds held up well. But pretty much everything else has been a nightmare.

The chart is from Jim Reid of Deutsche Bank Morning Email. Here’s what it looks like:

Q3 hammered


German Bank


Stocks around the world slumped in dollars (and mostly in local currencies as well) – even the FTSE MIB, the top index included here, fell around 5%. The most affected, such as Hang Seng in Hong Kong, Shanghai Composite in China and Bovespa in Brazil, suffered losses of 20 to 30%.

Commodities also plunged – oil, copper and wheat sold off, and even commodities that would often be seen as safe havens when others are collapsing saw declines, such as gold and gold. ‘money.

Reid calls it “a Q3 to forget.” Here is a better Q4.

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