Summary: Strengthening Headwinds

While the global economic environment remains relatively healthy, strengthening headwinds that are largely policy-driven are creating challenges for major asset classes.  Governments in the U.S., Canada, Europe and China, among others, are engaged in trade hostilities.  Central banks are either tightening monetary policies, as in the U.S., or becoming less accommodative, as in Europe.

Overall, U.S. equities will likely post single-digit gains in H2 2018, while bond prices will likely trade in a range, although it may be a bumpy ride for both asset classes.

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Asset Allocation: Strategic Outlook … p. 2

Equity Outlook —  Increasingly Challenging … p. 5

Fixed Income Outlook — Inversion Angst … p. 8

Alternatives/Commodities Outlook — Rangebound … p. 11

Tactical Asset Allocation … p. 13

Market and Global Sector Performance … p. 14

Key Economic Indicators … p. 16