2018 Outlook: Looking Beyond Market Volatility


With the dramatic spike in market volatility over the past week, many investors are asking what comes next. Markets entered 2018 with the wind at their back: double-digit equity returns, strong momentum, and expectations that the synchronized global growth and corporate earnings recovery we saw in 2017 should continue into 2018. So damn the torpedoes, full speed ahead? Not quite, as recent volatility suggests some storm clouds could be gathering. Central banks globally are moving away from emergency levels of easing, and large fiscal stimulus in the U.S. in the late stages of the business cycle could have unintended consequences. … (full story)