A “Halftime” Review of Asset Allocation for 2018

July 30, 2018 | Jeffrey Hoffmeyer, CFA, Lead Analyst, Asset Allocation , Greg Leonberger, FSA, EA, MAAA, Director of Research, Managing Partner

As of June 30th, the Russell 3000 index was up only 3.2%, a far cry from its 10-year annualized return of almost 9%; the MSCI ACWI ex-U.S. ­— a broad proxy for international stocks — has been even more disappointing, down 3.8% compared to its 2017 return of 27%. Furthermore, most bond strategies are negative for the year, thus dispelling the notion of diversification. However, the year is only halfway complete and as we have seen repeatedly in the capital markets, fortunes can change rapidly and unpredictably. In an effort to formulate explanations and expectations, the following newsletter investigates the disappointing performance from the first half of the year, as well as potential outcomes for the remainder of 2018.

Download 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.

Jeffrey Hoffmeyer, CFA
Lead Analyst, Asset Allocation

Get to Know Jeffrey

Greg Leonberger, FSA, EA, MAAA
Director of Research, Managing Partner

Get to Know Greg

Related Content

12.14.2018

Rebalancing Position Paper

Regularly rebalancing portfolios is one of the key duties of trustees and other fiduciaries responsible for managing…

12.13.2018

What Do Higher Rates Mean for Asset Class Returns?

Higher interest rates coupled with signs of a global slowdown and roughly two months of market volatility — including several…

12.06.2018

Should Investors Be Concerned About Yield Curve Inversion?

After eight post-recession Fed rate hikes since 2015, the U.S. Treasury yield curve continues to flatten. On Monday, December 3,…

11.29.2018

Are Bonds Approaching Moderate Value?

This week’s chart looks at how bonds have fared during the global volatility of the last two months. In summary,…

11.08.2018

Will U.S. Equities Rally to Finish the Year?

U.S. equities experienced a sharp correction last month with broad market indices erasing virtually all their year-to-date returns. The October…

11.05.2018

2018 Investment Symposium Briefing

Recorded Friday, September 28, 2018 — 2018 Investment Symposium  

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 >