A Note from Richard Lacaille, CIO
As we move into 2018, we believe macroeconomic conditions will support risk assets. Global growth is becoming more evenly distributed and is expected to return to its historical trend rate of 3.7%, while inflation remains muted.
There is, however, a tension between our positive outlook for 2018 and a number of near-term and longer-term uncertainties. As the US equity bull market enters its ninth year—the second longest on record—some investors are understandably concerned about the next pullback.
With this backdrop in mind, we think investors should look both ways—that is, that they should take a more cautious and risk-aware stance—as they step forward to make the most of the opportunities that synchronized global growth will likely offer in the year to come.