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S K E P T I C I S M TO O P T I M I S M
KEY THEMES FROM THIS YEAR’S CAPITAL MARKETS FORECAST Although the Capital Markets Forecast is a strategic document (i.e., the focus is longer term), we would be remiss not to offer a short-term tactical outlook to address market conditions entering 2018. Because our near-term perspective is far enough out of sync with our longer-term slant, we do not want the longer-term outlook to erroneously skew in investors’ minds our short-term, tactical perspective. While the divergence in outlooks is not new this year, the magnitude of the divergence has increased to the point that we feel now is the time to juxtapose the two. However, our longer-term viewpoint continues to be the focus of both this document and our investment process, and it is where investors are best served focusing in order to achieve their financial goals.
Equities should experience further gains in 2018, on top of 2017’s stellar market performance, as investors have become more confident— but expect increased volatility.
