The equity and bond markets both continued to enjoy significant positive momentum during the quarter. Equity indices continued their parabolic rise since making a low on March 9th of this year. Year to date, international markets (EAFE up 29%) have outperformed the US (S&P +19%). Bonds have performed well with the Barclays Aggregate up 6% for the year. Spreads on bonds have tightened dramatically and have contributed largely to the robust returns in that market as Treasuries are largely flat.  Returns from high yield bonds have outpaced most equity indices.

Patrick Braley, senior manager in the Dispute Resolution & Forensics Practice, was quoted in a recent article by Don Sadler, writer for the Atlanta Journal-Constitution. The topic discusses how companies should be proactive and take steps to prevent opportunities for fraud.

How quickly things change. In the first quarter of 2009 equities were down 9-15% depending on the benchmark.  That dismal performance included a significant rebound of 20% from March lows.  Fortunately the rally continued into the second quarter and resulted in positive returns for the quarter.  Domestic equity markets were up 16-21% during the quarter putting the S&P 500 up 3% for the year with mid caps the best performer up 10% for the year.  International markets also enjoyed a strong quarter up 25% with emerging markets up 35%.  For the year developed international markets are up 8% and emerging markets are the strongest performer up 36%.  Bonds posted positive results for the quarter and are up 2% for the year as measured by the Barclays Aggregate bond index.