A focus on potential economic pitfalls resulted in a jump in volatility, a move toward more defensive areas of the market, and a heightened focus on valuations.
Security selection was strong and the Strategy beat its benchmark, the Russell 3000® Value Index, for both the quarter and full year.
We remain confident that while the pace of earnings growth may slow in 2019, underlying economic fundamentals remain relatively solid.
Economic uncertainty could cause investors to seek more reasonably valued businesses over high-flying glamor names.
Employment and corporate earnings remained robust, but building headwinds stoked debate about whether the economy was entering a new phase.
Strong employment figures, robust manufacturing readings, and bullish consumer sentiment reignited a fear of missing out on the part of investors.
Investors sought clarity as they faced conflicting macro headlines for much of the period.
An uncertain future has led some investors to take a risky path in pursuit of growth and momentum.
Higher interest rates, a stronger dollar, and talk of trade wars injected uncertainty into an economy that otherwise showed signs of continued strength.
The vitality of the business climate appears underappreciated.
Investors responded to a murky economic outlook by gravitating toward growth-oriented names, defensive areas, and larger businesses.
Investors rang in the New Year celebrating the passage of tax cuts but then quickly turned their attention to potential market headwinds.
New trade tariffs, a sixth rate-hike from the Federal Reserve, and budding inflation left investors searching for opportunities that have the potential to thrive in a less accommodative world.
Economic data continues to reflect a buoyant economy.
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