Weekly Commentary, January 5th, 2018
- Equity markets started the year off with a bang this week with U.S. equities (S&P 500) up 2.61% and international stocks (EAFE) up 2.43%.
- Fixed income markets were mixed with investment grade bonds (AGG) down -0.27% and high yield bonds (JNK) up 0.81%.
- Commodity Rally - The Bloomberg Commodity index snapped a 15-consecutive day of gains on Friday with metals and oil climbing higher. Supply disruptions, a weakening dollar, and positive global growth expectations have seen a barrel of WTI oil climb north of $60.
- FOMC Minutes - The Federal Reserve released their notes from December's meeting showing that views on current rate policy isn't unanimous. 2 of the 9 voting members were against the 25 basis point hike that was passed amid concerns that the hike could slow economic growth and impede progress on the Fed's stated inflation goal of 2%. As of now the Fed still projects three further rate hikes for 2018.
- Winter Storms - We at Ten Capital would like to send our thoughts and prayers out to the thousands affected by blizzard conditions along the East Coast.
- Commentary: Last year provided investors a nice chance to catch their breath, and hopefully heal a few remaining wounds from the market beatings of the last decade. And while, it appears that 2018 will likely treat investors relatively well, a year with double digit returns across numerous asset classes with no volatility is highly unlikely. As a result, investors need to be ready for a few more trying times in 2018, but such volatility given the current economic/market environment we cover below, has me excited for the year ahead.
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