By Kieran Osborne, MBus, CFA®
Chief Investment Officer
We've prepared an economic update and outlook for the first quarter of 2019 that focuses on a few key themes – a review of last year, an update on the Fed’s monetary policies, the ongoing trade war, the economy, and the implications across asset classes.
Last year was a challenging year across asset classes. With the exception of cash and core fixed income (which was flat for the year), all major asset classes posted losses for 2018 on the back of rising volatility, particularly in the fourth quarter.
Bond yields moved consistently higher through the course of 2018, as the Fed raised rates faster than anticipated. The Fed raised rates four times during 2018. For context, at the beginning of the year the market only anticipated two rate rises.
We maintain a positive long-term outlook for stock market returns. Global equities ended 2018 trading at discounts to long-term averages. Near term, the recent government shutdown uncertainty and ongoing trade tensions between the U.S. and China may continue to cause some consternation for the market.
For more details on these key themes and outlook, watch Kieran’s Market Perspectives video presentation.
Please contact your client advisor if you have any questions on this presentation.