q4 2018 market Review

2018 was a reminder that volatility is part of investing. In recent years we’ve been spoiled by generally nice stock market growth with moderate to low volatility. Volatility returned in 2018 and accelerated in Q4. While many headlines can make this sound alarming, it is normal. In order to capture the long-term benefit of the market we must be willing to deal with the volatility that comes with it.

 

A comparison of 2017 and 2018 illustrates how much things can change and how unpredictable short-term market characteristics can be.

 

                                             2017                                2018

Performance:         Emerging        37.28%         US                  -5.24%

(best to worst)        International   24.21%         International  -14.09%                                                     US                   21.13%         Emerging      -14.58%

 

Below are graphs showing the performance of the MSCI Global Stock Market Index for 2017 and 2018. Note the relatively smooth growth of 2017 compared to the choppy losses of 2018.

 

2017 

 

2018 

 

 

In Q4 the US, international, emerging and real estate stocks all had negative returns. The same is true for the entire year of 2018. Bonds in the US and globally were positive in Q4, bringing returns for the year just into positive territory domestically, with better yearly performance by global bonds.

 

For a detailed market overview covering Q4 and all of 2018, click here.

 

Advisory services offered through Arbor Point Advisors. Securities offered through Securities America Inc., Member FINRA/SIPC. Arbor Point and Securities America are separate companies. CA Insurance #0E88557

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Advisory services offered through Arbor Point Advisors. Securities offered through Securities America, Inc., Member FINRA/SIPC. Arbor Point Advisors and Securities America are separate companies. This site is published for residents of the United States and is for informational purposes only and does not constitute an offer to sell or solicitation of an offer to buy any security or product that may be referenced herein. Persons mentioned on this website may only offer services and transact business and/or respond to inquiries in states or jurisdictions in which they have been properly registered or are exempt from registration. Not all products and services referenced on this site are available in every state, jurisdiction or from every person listed. CA Insurance #0E88557

Advisory services offered through Arbor Point Advisors. Securities offered through Securities America, Inc., Member FINRA/SIPC. Arbor Point Advisors and Securities America are separate companies. This site is published for residents of the United States and is for informational purposes only and does not constitute an offer to sell or solicitation of an offer to buy any security or product that may be referenced herein. Persons mentioned on this website may only offer services and transact business and/or respond to inquiries in states or jurisdictions in which they have been properly registered or are exempt from registration. Not all products and services referenced on this site are available in every state, jurisdiction or from every person listed. CA Insurance #0E88557​

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