Morningstar's Take on the Third Quarter
Our analysis of the third quarter in stocks and funds.
Our analysis of the third quarter in stocks and funds.
As the third quarter of 2019 comes to a close, Morningstar's analysts have provided in-depth reviews and outlooks across equity sectors and fund categories.
Equities
Stock Market Outlook: Energy Sector Again Looks Undervalued
U.S. and Canadian stocks are fairly valued overall, with energy offering the most opportunity and utilities the least.
Communication Services: Sector Continues to Outperform
We see little strategic reason for AT&T to combine wireless and media businesses.
Industrials: Sector Fairly Valued Overall, but Industrial Distributors Look Compelling
Industrials has outperformed despite signs of an economic slowdown and fears over tariffs.
Real Estate: Strong Performance as Investors Seek Income Amid Falling Rates Opportunities in real estate live in the mall and hotel REITs.
Healthcare: Political Uncertainties Have Weighed on the Sector
We see opportunities in providers, managed care, drugs, and biotech.
Technology: Sector Looks More Expensive Than at the Beginning of 2019
Opportunities now most common in software and online media.
Utilities: Surging Sector Could Keep Its Rally Going
If interest rates keep heading toward zero, utilities could benefit.
Basic Materials: Amid Trade Tensions, We See Several Opportunities
Agriculture, uranium, and lithium stocks look particularly appealing.
Consumer Cyclical: Regulatory and Economic Uncertainty Leads to Opportunity
For patient investors, an attractive industry is travel and leisure.
Consumer Defensive: Strong Growth Leaves Few Values
Shifting consumer health trends are having a big impact on the sector.
Energy: Opportunities Remain Following Saudi-Related Oil Volatility
Oilfield-services stocks look particularly attractive, trading at levels we haven't seen in some time.
Financial Services: Best Values in Stocks With Elevated Near-Term Risks
Investors have to be pickier with financial-services stocks this quarter.
33 Undervalued Stocks
Here are our analysts' top ideas in each sector at the third quarter’s end.
Funds
Third Quarter in U.S. Stock Funds--A Mixed Bag
Investors remained cautiously optimistic despite looming threats and rocky markets.
A Tepid Third Quarter for Non-U.S. Stock Funds
Non-U.S. stocks lagged U.S. equities again.
Third-Quarter Performance in 3 Charts
Bonds
Strong Third-Quarter Returns in Fixed-Income Market
Dave Sekera explains the quarter in bonds.
Central Banks Had Strong Medicine for Sniffling Markets in the Third Quarter
Economic and political uncertainty headlined the fixed-income markets.
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