The Investor Insight | January 2019

AS THE MARKETS closed out 2018, volatility returned with a vengeance. From their highs in late September, all averages fell more than 20%. The cause was a combination of a hawkish and aggressive Federal Reserve, trade war tensions, and political unrest here in the US. Below, courtesy of Bloomberg, is a rundown of how the major averages fared in 2018:

 
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On average, these indexes were down approximately 12% for 2018. The performance of global markets was even worse for 2018—with major markets including the DAX in Germany, down 21.94%; Euro Stoxx 50, down 18.20%; and China, down a whopping 30%. Even safe havens such as gold and other commodities like oil were down sharply. For example, oil lost 44% in the final 2½ months of the year. There was no place to hide this steep decline, which culminated in the Dow’s 653-point drop on Christmas Eve. Read More