Winter 2019
Market Outlook – Market returns have disappointed thus far in 2018 as a combination of fundamental and technical factors have negatively impacted asset values. While U.S. equities marginally outperformed global stocks and bonds through November, absolute returns in asset classes are well below recent and historical levels. Though we expected volatility to pick up this fall, the speed and strength of the correction reflects the depth of market angst related to these factors including: tighter monetary policy, credit cycle concerns, slower economic growth and political uncertainty.
Summer 2019
Market Outlook – The markets have roared back to life following a miserable ending to last year, as both bonds and stocks have posted significantly positive returns thus far in 2019. A significant shift in expectations for Federal Reserve monetary policy has been the primary force spurring asset prices higher. At the same time, excessively pessimistic valuations coming into the year, generally favorable earnings reports and stronger than expected first quarter U.S. economic activity provided fundamental support to the rally.
