Market Commentary

Market Commentary

The major benchmarks we track produced positive total returns for the year of 2017.

  • The MS World Equity Index increased 23.07%.
  • The Balanced index of 60% MSCI World Equity and 40% BC US Aggregate Bond produced an increase of 14.90%.
  • The Conservative index of 40% S&P 500 and 60% BC US Aggregate Bond increased 10.55%.

Domestic and International equities generated positive total returns and continued to tangibly outperform the total returns of the fixed income markets during 2017.

For 2018, we are projecting that equities will produce lower normalized positive annual total returns and fixed income total returns will be nominal or negative. We continue to favor equities over fixed income securities and our fixed income policy emphasizing short to intermediate term investment grade bonds.