Nowhere to Hide in 2018

January 04, 2019

As we enter 2019, we look back on what was a pretty poor year for investors. There was just nowhere to hide in 2018 as a volatile 4th quarter turned all major indices negative. The downward catalyst occurred when Federal Reserve Chair Jerome Powell said interest rates were “a long way” from what he considered neither stimulative nor restrictive.

For the year, the S&P 500 lost 4.4%, the Russell 2000 lost 11%, and emerging markets (as measured by the MSCI EM index) lost 14.6%. These losses came mostly as volatility spiked with the CBOE Volatility Index up 132% in 2018. Strong market fundamentals have largely been overshadowed by fear as global growth concerns, trade, and rising interest rate worries continue to pressure markets. This broad market correction has been historically unusual, but years with broadly poor returns from a majority of indices are typically followed by a positive year as investors find value in market opportunities.

Print PDF

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

 

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Related Content

10.08.2026

3Q 2026 Market Insights

This video is a recording of a live webinar held October 22 by Marquette’s research team analyzing the third quarter…

10.22.2026

Will Higher Rates Cramp the Markets?

Anyone who has run a marathon knows the last six miles are brutal — no matter how well the first…

Line chart comparing S&P 500 Index cumulative returns for midterm and non-midterm election years since 1980. The x-axis shows October through December, and the y-axis shows S&P 500 Index cumulative return, ranging from -1% to 8%. For full dataset, please contact marquettemarketing@marquetteassociates.com.

10.19.2026

Divided We Rise?

Since 1980, the S&P 500 Index has generally performed well in the weeks surrounding U.S. midterm elections. Specifically, the index…

Chart #1 - Line chart showing PJM summer peak load estimates in gigawatts (GW) from 2015 to 2045. The chart compares historical peak load, current capacity, and forecasts from 2024, 2025, and 2026, showing projected demand rising above current capacity over time. Chart #2 - Stacked bar chart showing U.S. power demand in terawatt-hours (TWh) for 2025 and estimated demand in 2030. The chart compares data center and non-data center demand, showing total power demand increasing over the period.

10.12.2026

The Power Demand Supercycle

This week’s chart highlights the accelerating growth of electricity demand in the U.S., which has been driven primarily by the…

Bar chart showing average monthly VIX levels from 1990 through October 2026. The x-axis displays months of the year from January through December, and the y-axis displays VIX level. October has the highest average VIX level among all months, while April has the lowest. The chart also includes a current VIX level and a long-term average VIX level for comparison. Source: Bloomberg as of October 2, 2026. Data series begins in 1990. For full dataset, please contact marquettemarketing@marquetteassociates.com.

10.05.2026

Spooky Season

For investors, the spookiest thing about October might not be the ghosts and monsters that are bound to show up…

Line chart showing 10-year U.S. Treasury rate, 5-year/5-year breakeven inflation rate, and 10-year real yield from December 2025 through September 2026. The left axis shows rates from 3.6% to 5.4%, and the right axis from 1.6% to 3.0%. The Treasury rate and real yield rise notably in late 2026, while the breakeven inflation rate remains relatively range-bound around 2.3%–2.4%. For full dataset, please contact marquettemarketing@marquetteassociates.com.

09.28.2026

Getting Real on Inflation

The phrase “expectations of higher inflation” has become a staple in financial news to explain the increase in nominal U.S….

More articles

Subscribe to Research Email Alerts

Research Email Alert Subscription

Research alerts keep you updated on our latest research publications. Simply enter your contact information, choose the research alerts you would like to receive and click Subscribe. Alerts will be sent as research is published.

We respect your privacy. We will never share or sell your information.

Thank You

We appreciate your interest in Marquette Associates.

If you have questions or need further information, please contact us directly and we will respond to your inquiry within 24 hours.

Contact Us >