Q4 2017 Market Summary

As we have communicated previously, we have felt since early last year that the economic fundamentals were on solid ground and accelerating. This outlook has been bolstered by a strengthening corporate and consumer sector, and fiscal stimulus (passage of the tax package), giving the equity markets fundamental support.  Our interest rate strategy has been defensive, as we have felt the market was not pricing in enough tightening by the Fed and was underestimating the risk of rising long-term interest rates. As you will see in the attached market review and outlook (click here), we remain constructive on the markets in the long-term, but must consider the fact that interest rates will rise, will generate higher volatility and will challenge equity markets at times.