Market Commentary

Market Commentary

The major benchmarks we track produced negative total returns for the first quarter of 2018.

  • The MS World Equity Index decreased 1.21%.
  • The Balanced Index of 60% MSCI World Equity and 40% BC US Aggregate Bond declined 1.24%.
  • The Conservative Index of 40% S&P 500 and 60% BC US Aggregate Bond decreased 1.11%.

Domestic and International equities generated negative total returns but continued to outperform the total returns of the fixed income markets during the first quarter.

For the next twelve months, we are projecting that equities will produce normalized positive annual total returns and fixed income total returns will be nominal or negative. We are favoring equities over fixed income securities and our fixed income policy is emphasizing short to intermediate term investment grade bonds.