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2018 Outlook: Continuing to Live in Interesting Times

January 26th, 2018 | Economy, Markets | North Forty Two

A little more than a year ago, in the wake of surprising results in the U.S. presidential election, we forecasted elevated levels of market volatility in both directions. While the world at large has felt varying levels of uncertainty and unsteadiness since then, the markets grinded higher in an unprecedented fashion.

As a result, current valuations are lofty across the board as the momentum factor led asset classes to levels, on a cyclically adjusted price-to-earnings basis, rarely seen in history. At the same time, markets have also produced unanticipated and uncommon low volatility. The resurgence in global growth and a backdrop of very low interest rates and modest commodity prices has traditional Wall Street in a euphoria reminiscent of our early days in the industry.

Read more in our 2018 Outlook:

NFT 2018 Outlook