2018 Q1 Market Commentary
Apr 13, 2018
In the first quarter of 2018, major indices pulled back from their all-time highs. At the end of this first quarter the S&P 500 index witnessed nine consecutive months of quarterly gains come to an end.
|
Year |
Canada |
US |
Europe |
Emerging Markets |
World |
|
2018 Q1 |
-4.50% |
-0.63% |
-4.23% |
0.76% |
-2.08% |
|
2017 |
9.22% |
21.90% |
13.72% |
31.00% |
19.13% |
|
2016 |
21.15% |
11.61% |
7.90% |
10.11% |
9.65% |
|
2015 |
-8.36% |
1.32% |
5.45% |
-5.40% |
2.65% |
|
2014 |
11.43% |
13.36% |
5.22% |
5.57% |
10.40% |
|
2013 |
13.58% |
32.61% |
22.26% |
3.79% |
29.57% |
Source: MSCI gross returns including dividends, all returns in local currency.
Global stock markets have also seen considerable volatility during this time. This elevated volatility began in February and has continued through March with rumours of the U.S. imposing tariffs on various countries and industries being at least partially to blame.
Last year, global stock markets seemed to ignore President Trump’s comments and volatility was muted. During this time, it appeared as though nothing the President could say would shake the confidence of investors. However, that narrative has now shifted and it is not uncommon for the U.S. stock market to decline by 3% in one day based on a rumour coming out of Washington D.C., only to bounce back the next day when that rumour turns out to be false. As we often remind you:
- Volatility in the stock market is something that should be expected
- Your overall portfolio will tend to have lower volatility than any individual stock market
- Maintaining a patient, long-term approach is paramount.
There are important concepts to remember in times of market instability. In every decline, no matter how severe, markets ultimately tend to stabilize. It is important to avoid making emotional decisions, and we will continue to monitor your long-term financial plan and investments to ensure they are poised to handle interest rate changes and market volatility.
Mark Neufeld is a Financial Advisor with RGF Integrated Wealth Management. The views expressed are those of the author and not necessarily those of RGF Integrated Wealth Management, which makes no representations as to their completeness or accuracy.
©2018 RGF Integrated Wealth ManagementLtd. | RGF Wealth Management Ltd., Member – Canadian Investor Protection Fund
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