At the end of 2018, interest rates were heading higher due to a hawkish Federal Reserve (FED); both global trade and manufacturing were slowing as the trade war raged on; and earnings expectations were being revised down. This led investors to conclude that the economy was slowing both abroad and here at home. Due to all of this, global equities, represented by the MSCI ACWI Index, suffered their eighth worst¹ quarterly loss in 30 years.
Yesterday saw the major U.S. stock bourses suffer the worst losses since February. Today, they followed suit. While it may be hard to ignore the financial press’s headlines, we would like to remind everyone of a few pieces of information that should allow most angst to subside.
Are you wearing rose colored glasses? Take them off and you might see Bifurcated Markets, Tariffs, and Tempered Earnings ExpectationsOctober 9, 2018
“These rose colored glasses
That I'm looking through
Show only the beauty
'Cause they hide all the truth”
-John W Conlee