February 2019

2018 was a difficult year for global investors, as virtually all asset classes and regions around the world declined. In the US, equities had their worst year in a decade, with the S&P 500 falling by 6.2%, while small cap stocks dropped by 11%. Elsewhere, markets were even more hard hit, with global equities down by 13.8%, reflecting falls in emerging markets of 14.7%, in Japan of 12.6% and in Europe of 14.3%. Nor did other asset classes escape the carnage. In the US, corporate bonds fell by 2.1%, real estate stocks fell by 4% and, globally, commodities declined by 11.2%.