Quarterly Investment Strategy

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First Quarter 2019 Advancing with caution

While the fundamental macro calls throughout 2018 were largely correct, the market reaction was less constructive at the end of the year. Despite global gross domestic product (GDP) growth remaining above trend in 2018 and double-digit earnings growth in most regions, equity and fixed income markets struggled to achieve positive returns. The policies from the US Federal Reserve (Fed) has translated into a tighter monetary environment, and it appears increasingly clear that markets are behaving similarly to what they did in 1994 which led to both negative returns for global equity and fixed income markets.