Risk & Return – Part 2
April 10, 2019
Estate Planning – For the Inexperienced
April 23, 2019

2019 First Quarter Investment Market Report

Investors in virtually all major asset classes were richly rewarded in 1Q2019.

US stocks posted their largest one-quarter gain since 3Q2009. As measured by the Wilshire 5000 Total Market Index, US stocks were +14.23% from January 1 – March 31, 2019.

International stock investors also experienced excellent returns, with the broad-based EAFE (Europe, Australasia, Far East) Index + 9.04% and EAFE Emerging Markets Index + 9.56% in 1Q2019. 

Bond investors in all major sub-asset classes (US Treasuries, US TIPS, US Investment Grade Corporate, US High Yield, US Municipals, International Developed, and Emerging Market) experienced strong returns, led by US High Yield (+7.3%) and Emerging Market (+7.0%).

Commodities and Real Estate provided generous returns, with Crude Oil (+32.44%) leading the way, while gold (+ 1.36%) lagged.

The sequence of returns from each asset class highlights the power of diversification and the difficulty of timing the markets.

We are now ten years into a US economic expansion since the Great Recession, when the S&P hit a low point in March, 2009. Since that time, disciplined long-term investors that believe in the strength and resiliency of publicly-traded securities have experienced outstanding returns and wealth creation.

If you pay attention to Headline News and the 24 hour news cycle, you may be distracted by the ‘issue of the day’ and lose sight of other key factors and larger trends that tend to drive market performance. 

Key factors include – US employment remains strong, wages are increasing, corporate profits are high, bond default rates are low, and the Fed interest rate increase cycle is on pause.

Larger trends can drive market performance – on a global basis, the world’s population is getting richer. Hundreds of millions of people in the emerging markets are entering the middle class, becoming larger consumers and driving demand for goods and services.  

As always, we recommend an investment plan based on your Goals, Risk Tolerance, and Time Horizon that takes advantage of the premiums offered by traded securities.  

Richard Gross – Vice President, Wealth Management

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Mark Shone CFPMark Shone, CFP

Phone: 925.472.0874
Mobile: 925-209-3771
Fax: 925-472-0884
E-mail: mshone@shoneassetmgmt.com

Mark Shone, CFP®, founder of Shone Asset Management LLC, is responsible for all aspects of Financial Planning and Asset Management at Shone Asset Management and works directly with clients of the firm. He has been in the business since 1988 and founded the firm in 2005 as a fee only financial planning and asset management business. Prior to founding Shone Asset Management, he was a Managing Director and Neuberger Berman and Lehman Brothers. Mark has a degree in Finance from California State University, Sacramento, competed his certificate in taxation at UCLA and completed a course of study at the Wharton School.

Mark enjoys helping families and clients map out the financial life they want to create and helping them by making smart decisions over time. He has extensive experience speaking on and guiding clients through topics such as retirement planning, preparing for the cost of education, investment allocation strategies, estate planning topics, insurance and behavioral finance. He is committed to helping clients maximize their full wealth potential.

In his spare time Mark enjoys golfing, is an avid sports fan and is a drummer for the band Stagefrite which plays cover songs from the 80’s to today.


Gail Markham

Director of Client Service

Gail has worked in the Financial Services industry since 1983; as a Bank Manager, and as an Investment Advisor as well as Compliance Manager for major Wall Street firms.  She is a graduate of the University of the Pacific.

Gail is a long time resident of the East Bay.  She lives in Walnut Creek with Will, her husband of 26 years.  She has two children, Jack & Kelly who are college students.

Gail enjoys golf, hiking, traveling, gardening, wine and college basketball.


Griffin Daniel Sheehy

I came on board with Shone Asset Management in 2016 and as Financial Associate, I provide support in the areas of investment planning, financial planning, and portfolio management. I am a graduate of Cal Poly San Luis Obispo’s Orfalea College of Business where I earned a Bachelor of Science of Quantitative Economics concentrated in Financial Management. Post-graduation, I went straight to work for Waddell & Reed, which is a large advisory firm that specializes in financial and investment planning. I started there in an assistant-type role until earning my Series 7 and Series 66 licenses and at that time promptly transitioned into an Advisor Associate role. Having those licenses allowed me to not only engage in full support on the client servicing side, but in the financial and investment planning process as well. This is where I learned just how critical developing, implementing, and constantly reviewing a solid all around plan is to the success of one’s financial goals. While in college, I interned at Northwestern Mutual in Sacramento where I earned my Insurance License and was educated in the value of managing the risk of unforeseen events in life. I also interned at a small commodities market research firm based in Petaluma, California called Streetwise Reports.

I am married and in my free time I enjoy outdoor activities with my beautiful wife like taking beach trips and hiking. I also enjoy playing sports in local leagues for baseball and basketball.