Insights

2018 2nd Quarter Commentary

During the quarter, equity markets traded in a narrow range with less volatility than was seen earlier in the year. The S&P 500 experienced a modest recovery and ended the quarter at 2,736—a positive return for the period but still 5% below the high reached in early January.

The synchronized global economic expansion continued, with revenue and earnings for the S&P 500 once again significantly exceeding forecasts. Many domestic economic indicators are at or near record levels. With stronger growth, inflation pressure is building in certain areas. Central banks around the world are migrating back towards a normalized interest rate policy, and the Fed increased the number of expected rate hikes this year. Portfolios remain positioned for faster growth, although with a degree of caution, given the price volatility experienced so far this year and the chance that the Fed will raise rates too aggressively.


Download the 2018 2nd Quarter Commentary