Recall the market backdrop of Q4 2018. An equity selloff was seemingly driven more by de-risking than fundamentals. As financial professionals and investment practitioners assessed the landscape for asset allocation, economic conditions looked strong and equity valuations looked cheap. A consensus risk-on view emerged with some consistency in relative value between asset classes. Ten months later, returns have been strong, the Fed has changed course, and the outlook feels much less consensus driven. Among major investment banks that we track, the range in outlooks for the year-end S&P 500® Index value is at its widest since 2011.
Dispersion of Year-End S&P 500® Outlook
All investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.
This material is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed are as of November 6, 2019 and may change based on market and other conditions. There can be no assurance that developments will transpire as forecasted, and actual results may vary.