Our latest Market Perspectives provide timely economic and financial expertise on emerging trends and issues that are top of mind with our clients.
- U.S. stocks extended their rally in January. The S&P 500 led the way with a 5.7 percent gain, followed by mid caps at 3.8 percent, while small caps rounded out the pack with a 2.6 percent increase.
- Fixed income performance was mixed in January, with high-quality bonds slipping as long-term yields edged higher, while more risk-correlated bonds (such as high yield) advanced.
- Volatility reared its ugly head in early February, pushing stocks sharply lower and marking the end of an unusually long period of calm in the equity markets. Despite that, economic fundamentals still look strong and our overall outlook remains largely unchanged.
- If anything, the correction took some froth out of equities, bringing valuations back down toward more reasonable levels.
- Initial estimates indicate that the U.S. economy expanded at a 2.6 percent pace in the final quarter of 2017, falling slightly short of expectations, but still representing a healthy pace of growth.