After logging strong returns in 2017, global equity markets delivered negative returns in US dollar terms in 2018. Common news stories in 2018 included reports on global economic growth, corporate earnings, record low unemployment in the US, the implementation of Brexit, US trade wars with China and other countries, and a flattening US Treasury yield curve. Global equity markets delivered positive returns through September, followed by a decline in the fourth quarter, resulting in a –4.4% return for the S&P 500 and –9.4% for the MSCI All Country World Index for the year.
In our second-annual Mid-Year Investment Review, Chappaqua’s Scott Kahan talks about Trump, trade wars & your portfolio with What To Do, Scott is a Certified Financial Planner and President of Financial Asset Management Corp, in New York City and Chappaqua.
Let’s start off with Morgan Stanley’s recent warning of a stock sell. Are we at a tipping point?
At the beginning of 2017, a common view among money managers and analysts was that the financial markets would not repeat their strong returns from 2016. Many cited the uncertain global economy, political turmoil in the US, implementation of Brexit, conflicts in the Middle East, North Korea’s weapons buildup, and other factors. The global equity markets defied their predications, with major equity indices in the US, developed ex-US, and emerging markets posting strong returns for the year...