2018 Investment Outlook (2017 Q4 Market Thoughts, Outlook Webinar Replay & AA Letter)

February 5, 2018 / by NEPC

Our investment teams have been working hard to develop our 2018 investment outlook and we look forward to sharing this with you. Please see below or click to view our recent Market Outlook Webinar Replay, Annual Asset Allocation Letter and Quarterly Market Thoughts.


2018 Market Outlook Webinar Replay 

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NEPC held a recent webinar on January 30, 2018. NEPC's Mike Manning, Managing Partner, Phillip Nelson, Partner and Director of Asset Allocation and Andrew Coupe, Insurance Senior Consultant, discussed the top issues and trends that will impact the markets and investors in 2018. 



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Our annual letter provides NEPC's longer-term perspectives and NEPC’s market outlook. As markets soar, discipline and asset selection are
key to successful investing in 2018.

Still, reaching for the skies in 2018 will involve a more selective and disciplined process. Investors will have to take a measured approach, heeding the words of Daedalus, whocautioned his son, Icarus, to neither fly too high nor too low. While our intention is not to clip your wings, we do advocate caution while seeking investment opportunities and also suggest scaling back risk exposures where value appears limited. We stand behind equities outside the US, as international stocks are poised to benefit from favorable macroeconomic conditions and an improving corporate earnings outlook.

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Fourth quarter MARKET THOUGHTS

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Our Quarterly Market Thoughts delves deeper into recent market events. As equities hit the high notes, we advise caution to investors should the music stop.

Hitting new highs, the S&P 500 Index spent its ninth straight year in the black. The flagship US index has posted 14 consecutive months of gains with only one of the last 20 quarters in the red. While non-US stocks joined the chorus only in 2017, they caught on pretty quickly with developed market equities up 25% in 2017, according to the MSCI EAFE Index. That said, it was emerging market equities that really hit the highest notes last year, leading the way with returns of 38%. Not to be left out, highyield debt and dollar-denominated emerging market bonds outperformed within credit.

Topics: Endowments & Foundations, Healthcare, Insurance, Public Funds, Taft-Hartley, Asset Allocation, White Paper, Defined Contribution, Private Wealth, Webinar, Quarterly Market Thoughts, Corporate Defined Benefit

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