Why the outlook for 2019 could be ok after all

Looking back at 2017, it seems that year was too good to be true. When we look at monthly returns including dividends, the US share market didn’t suffer one negative month.

Unfortunately, that lack of volatility led to complacency, and volatility returned in a big way in 2018. It reached a crescendo at the end of the year, with sharp falls in global shares and a spike in volatility (though Australian shares held up relatively better).

Investors had a lot to be worried about including slowing global growth, the US/China trade war, fears of aggressive rate hikes by the US Federal Reserve, and the US Government shutdown.


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