Outlook 2019: More Risk for Less Return?

Investors may be feeling a bit skittish as talk has shifted to rising rates, slowing economic growth, and growing geopolitical risks. A neutral allocation to equities still seems appropriate for 2019, but the risks are rising. A key question going forward is whether the recent volatility marks an intermission of the nearly decade-long bull market or if it represents a turning point. We think the former, but the second act may be far shorter than the first.