Investing through adversity

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The long view

Overdue and not entirely unwelcome: That’s one way to look at the correction in equity markets during 2018. Although swift declines can be unsettling, they have long been part of the investment environment. “The correction was overdue,” portfolio manager Tim Armour says. “The pullback didn’t leave me overly concerned. Markets do better over the long term when they experience corrections periodically; they can’t go up all the time.” Tim says that generally positive economic data continued to provide a healthy backdrop for markets in much of the world. In this environment, corporate profit growth remained healthy, while tax reform boosted gross domestic product and consumer spending was relatively strong. Elsewhere, growth has slowed in China and Europe. While this divergence has added a measure of uncertainty to the global economic picture, growth projections from the International Monetary Fund have stayed reasonably solid