Market Perspectives Q3 2017

In Articles, Investments, Market Updates by Matthew Adams

By Matthew Adams, MBA
Chief Investment Officer and Partner

 
We’ve prepared an economic update for the third quarter of 2017 that focuses on a few key themes – the ongoing global equity rally, current economic conditions, and thoughts pertaining to valuations for U.S. equities.

Domestic, international, and emerging market stocks continued to rally in the second quarter of 2017 and now have posted strong double digit gains year to date. Synchronized global growth and ongoing easy monetary policy have made recent conditions ideal for equity appreciation.

We are now in the second longest economic expansion in U.S. history, second only to the 1990’s economic cycle. Conditions look good for continued (yet moderating) economic growth in the U.S. Developed international and emerging economies are now in aggregate growing faster than the U.S. economy.

Valuations for U.S. equities are in general at levels nearing the top decile by historic standards. Pockets of lower absolute valuations exist within international and emerging markets stocks. The current environment has been characterized by very low levels of volatility, and we have not seen an equity market correction in some time. Keeping client portfolios prepared for unforeseen events and future pullbacks remains a priority at Mission Wealth.

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