by Andrew Murphy, CFA Director of Portfolio Management
Q1 2019 Market Review and OutlookMarket Commentary |
First Quarter 2019 Market Review and Outlook is now available!
by Andrew Murphy, CFA | Director of Portfolio Management
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Global equity markets rebounded sharply in the first quarter of 2019 as the MSCI All Country World Index (ACWI) returned +12.2%. Investors were happy to welcome the New Year after the ACWI index declined by -8.9% in 2018 – the worst annual return since 2008. Investors grappled with a few conflicting market forces, including:
Positive: cheap valuations after the 2018 selloff, progress toward a US/China trade deal, and more stimulus from global central banks.
Negative: decelerating global economic growth.
What a difference a few months makes. The strong start to 2019 is not because all the risks facing the market in late-2018 have quickly evaporated. Rather, we believe that last year’s selloff was another example of how markets can be extremely volatile and sometimes irrational in the short-term. The randomness of markets over short time periods is why we do not engage in market timing and encourage our clients to maintain a long-term viewpoint. We believe the best approach is to combine a detailed financial plan with a structured, consistent, and repeatable investment process. At Winthrop Wealth Management, out investment process is designed to provide well-diversified portfolios constructed with a methodology based on prudent risk management, asset allocation, and security selection.
Our goal with this update is to provide a recap of the global markets, answer questions that have been top-of-mind for many of our clients, and provide context for our market outlook.