Broker Check

Our View of 2018

| October 16, 2018
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In this week’s weekly market commentary, we want to revisit our initial assessment of global equity markets for 2018, as addressed in late December 2017.  The notion of increased upside, without the possibility for volatility, was something that we severely questioned for calendar year 2018.  After all, the lack of volatility in 2017 proved to be of historic proportions and it led us to justify a neutral equity market environment for 2018, not to mention our less than favorable stance for fixed income investments, as evidenced by the risk and uncertainty tied to interest rates.  The equity market downside that we experienced during the week should not be something that questions the market’s ability to sustain long-term growth.  Such downside activity is healthy and has historically been associated with new equity market highs over the long-term.  When we think of long-term risk management and long-term success, the risk aspect takes a central role, which is why our strategies come embedded with FLEX options, some of which were triggered at the beginning of the 4th quarter.  As we gauge risk and as we assess the long-term return potential of strategies, we are capable of taking advantage of such downside volatility in the near-term because it allows us to restructure with higher net equity exposures over the long-term.  We accomplished this in the first quarter of 2018 and stand ready to do it again.  By remaining proactive, rather than reactive, we’ve implemented a proven track record to attempt to enhance our clients’ long-term success.  Such success is not always possible without periods of volatility.  When others panic, we remain objective. 

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Investment Policy Committee:


Investment advice offered through CX Institutional, a registered investment advisor.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly. The economic forecasts set forth in the presentation may not develop as predicted.

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