Stock and bond markets diverged this quarter bringing an end to the impressive rally in the equity markets. During the quarter the S&P 500 declined 11.4% making the year to date loss 6.7%. International stocks fared slightly worse declining 12.2% during the quarter and 10.8% for the year. Small and Mid Cap stocks did slightly better with both the Russell Midcap and 2000 indices down nearly 10% for the quarter and 2% for the year. Bonds were up 3.5% and 5.3% for the quarter and year to date periods respectively as measured by the Barclays Aggregate index. The HFRX Global Hedge Fund index was down 1.2% for the year.