January 2018 – 2018 Market Outlook

January 30, 2018

January has started out with a bang as global equity markets have extended their gains of 2017. As we prepare for 2018, we thought it would be helpful to review the market results of 2017 and what we believe we can expect heading into the new year. As the table below indicates, markets are a very dynamic place and things don’t generally remain the same for long. As far as investment returns go, the right-hand side of the table below shows that 2017 was a decent year for bonds, a very good year for U.S. equities and an outstanding year for international equities. Real estate managed positive gains for the year as did commodities. Although, with commodities (especially oil), it was a tale of two halves as the first half of the year was decidedly negative and the second half saw double-digit returns. Historically low market volatility, a strong rebound in corporate earnings, low inflation and low (albeit rising in the U.S.) short-term interest rates drove equity markets higher around the globe.

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