This year could turn out to be as exciting and eventful as 2017.

The so-called “Goldilocks” environment re-emerged in 2017, and the combination of synchronized global economic growth, low interest rates and low market volatility drove risk assets of all types and geographies sharply higher. While this momentum—boosted in the U.S. by tax reform that will slash corporate rates and introduce accommodating repatriation provisions—is expected to extend into the early part of 2018, we see risks gathering on the horizon.

On January 9, 2018, join a webinar hosted by our senior investors to discuss what they envision as the main drivers of public and private markets in the coming year, as well as opportunities and risks investors may face.

In Case You Missed It

  • Japan Consumer Price Index: +0.6% in November year-over-year (core CPI increased 0.9% year-over-year)
  • S&P Case-Shiller Home Prices Index: October home prices increased 0.7% month-over-month and increased 6.4% year-over-year (NSA); +0.2% month-over-month (SA)
  • U.S. Consumer Confidence: -6.5 to 122.1 in December

What to Watch For

  • Monday 1/1:
    • China Purchasing Manager Index
  • Tuesday 1/2:
    • Eurozone Purchasing Manager Index
  • Wednesday 1/3:
    • ISM Manufacturing Index
    • FOMC Minutes
    • Japan Purchasing Manager Index
  • Friday 1/5:
    • U.S. Employment Report
    • ISM Non-Manufacturing Index
    • U.S. Durable Goods Orders
    • Eurozone Consumer Price Index

– Andrew White, Investment Strategy Group

Statistics on the Current State of the Market – as of December 29, 2017

Market Index WTD MTD YTD
Equity      
S&P 500 Index -0.3% 1.1% 21.8%
Russell 1000 Index -0.3% 1.1% 21.7%
Russell 1000 Growth Index -0.4% 0.8% 30.2%
Russell 1000 Value Index -0.2% 1.5% 13.7%
Russell 2000 Index -0.4% -0.4% 14.6%
MSCI World Index 0.2% 1.4% 23.1%
MSCI EAFE Index 1.0% 1.6% 25.6%
MSCI Emerging Markets Index 1.7% 3.6% 37.8%
STOXX Europe 600 1.2% 1.4% 25.9%
FTSE 100 Index 1.3% 5.0% 11.9%
TOPIX -0.5% 1.6% 22.2%
CSI 300 Index -0.6% 0.6% 24.3%
Fixed Income & Currency      
Citigroup 2-Year Treasury Index 0.1% 0.0% 0.2%
Citigroup 10-Year Treasury Index 0.7% 0.2% 2.1%
Bloomberg Barclays Municipal Bond Index 0.6% 1.0% 5.4%
Bloomberg Barclays US Aggregate Bond Index 0.5% 0.5% 3.5%
Bloomberg Barclays Global Aggregate Index 0.9% 0.3% 7.4%
S&P/LSTA U.S. Leveraged Loan 100 Index 0.1% 0.3% 3.3%
ICE BofA Merrill Lynch U.S. High Yield Index 0.2% 0.3% 7.5%
ICE BofA Merrill Lynch Global High Yield Index 0.4% 0.3% 10.2%
JP Morgan EMBI Global Diversified Index 0.3% 0.7% 10.3%
JP Morgan GBI-EM Global Diversified Index 1.1% 2.0% 15.2%
U.S. Dollar per British Pounds 1.2% -0.1% 9.5%
U.S. Dollar per Euro 1.5% 0.7% 13.8%
U.S. Dollar per Japanese Yen 0.7% -0.7% 3.5%
Real & Alternative Assets      
Alerian MLP Index 0.5% 4.7% -6.5%
FTSE EPRA/NAREIT North America Index 1.5% 0.3% 4.6%
FTSE EPRA/NAREIT Global Index 1.9% 1.8% 15.0%
Bloomberg Commodity Index 2.9% 3.0% 1.7%
Gold (NYM $/ozt) Continuous Future 2.4% 2.6% 13.7%
Crude Oil (NYM $/bbl) Continuous Future 3.3% 5.3% 12.5%

Source: FactSet, Neuberger Berman.