Asset Allocation Committee Outlook 4Q18
Also Interesting
A Critical Point in the Cycle
Going into the fourth quarter, the Asset Allocation Committee (AAC, “the Committee”) reflects upon how unusual 2018 has been for financial markets. One of its most notable features has been some extreme divergences between asset classes that have usually exhibited high correlation. At the latest AAC meeting, debate focused on whether these are significant relative value opportunities. If the business cycle can extend through 2019 and becomes the longest of the modern age, they probably are. But does recent volatility suggest they might really be a sign of how brittle that cycle has become?
