Our business associates at City National Rochdale, a leading investment management firm for high net worth clients, recently released an updated market commentary. In this piece, they encourage clients to "stay invested, but expect more moderate returns".
Here are some key takeaways...
- In spite of areas of concern, "investors have remained focused on improving economic growth, rising corporate profits and the upcoming changes in the tax code."
- "...we see few obvious clouds on the horizon for the world economy."
- "Although valuations of major markets look full with recent price gains, they do not appear too expensive to prohibit further price gains."
- "... it would be wise not to extrapolate 2017’s performance into 2018, nor to expect the same smooth ride of steady monthly market advances."
- "Bear markets rarely occur outside of economic downturns, and current recession risk appears low both at home and abroad."
- "The final stages of a market cycle can be rewarding, but this year’s impressive market gains are unlikely to be repeated and investors should expect more moderate returns in 2018."
Read the entire, two-page commentary by clicking the link below.