Welcome to the Fourth Quarter
2016 is a year no one will soon forget. It was the worst start to a year ever for the S&P 500 after 28 trading days (down 10.5%), only to bounce back and actually finish positive by the end of the first quarter. During the second quarter, the bounce in equities continued and the S&P 500 made its first new all-time high in 14 months. After a very volatile first half of the year, in August the S&P 500 traded in its tightest monthly range in more than 20 years. But the “v word” — volatility — has started to come back, as the S&P 500 has closed at least half a percent higher or lower for eight straight days for the first time in eight months, wrapping up the third quarter of 2016.