3rd Quarter 2018: The Tug-of-War Continues

We believe that financial markets are caught in a tug-of-war between the positive impact of late-cycle economics and negative forces connected to monetary policy and geopolitics. What does this mean for investors?

Keep an Eye on Positive & Negative Market Forces

As we look toward the second half of 2018, we reiterate our assertion that this struggle between opposing forces is ongoing and will continue for the near-term. Whether the positive impact of economic growth is likely to exceed the negative impact of rising interest rates and geopolitical uncertainty is the major question facing investors.

The dispersion of asset class returns in the second quarter 2018 reflects the degree to which factors on either side of the tug-of-war are impacting individual investment strategies differently:

Diversification Remains Key

From the perspective of strategic portfolio allocation, we recommend investors remain highly diversified in this uncertain environment. Within strategic target ranges, investors might consider holding greater cash balances to buffer portfolio volatility and provide dry powder in the event of a market selloff.

Watch our video to learn more about our third quarter investment outlook.

Investors interested in learning more about our perspective can visit the Curi Capital website or reach out to the Capital team directly at 919.890.0515.