2018 Mid-Year Review & Outlook

Market Overview: Volatility finally presented itself and there may be more to come.

In our year-end 2017 correspondence, we highlighted the potential for market volatility and our thoughts that it would present itself in some fashion during 2018. After a strong start to the year with equities increasing 8% over the first 18 trading days, equity markets reversed course and sold off abruptly, declining 10% over the next nine trading days. While this volatility did not approach levels experienced in 2008 it was significantly elevated versus recent figures. In the months following, volatility levels tempered, but the impact was real and we continue to believe that these volatility spikes will present themselves at more regular intervals given our station in the current market cycle. After recovering from the February lows, markets experienced a period of moderate volatility, retesting lows during early April before consolidating to mount an impressive move higher into mid-year were equities seem poised to challenge the highs from January.

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