The Investment Committee of the Univest Wealth Management Division, under the direction of Timothy Chubb, Chief Investment Officer, recently met to review and update key performance indicators in order to chart its strategy for the remainder of the year. In the final quarter of 2018, the Committee expects to see a healthy U.S. economy and continued geopolitical uncertainty which may limit asset returns.
The following is the updated outlook as we head into the fourth and final quarter of 2018.
Every forecast is predicated on the information currently available and subject to the risk of unforeseen events, and ours is no exception. Our outlook is positive as we expect the global economy to strengthen, inflation to rise at a moderate pace, unemployment to remain low and the Federal Reserve to be data dependent before raising rates further.
We believe the greatest risk for investors through the end of the year will be overreacting to volatility and navigating the maturing business cycle. Historically, late cycle equity market returns are significant and the cost of missing out can more than exceed the downturn that is in turn avoided. It is possible this may be the longest economic recovery in U.S. history. We encourage investors to consider how their appetite for return and aversion to risk has changed throughout this long, although historically weak, expansion.
This document contains “forward-looking statements” – that is, statements related to future, not past, events. In this context, forward-looking statements address our reasonable expected and anticipated outlook for various aspects of the economy and markets. Such statements are based on the Investment Committee’s beliefs as well as assumptions made by and information currently available to the Investment Committee. Statements are subject to risk and uncertainties, which could cause actual results to differ materially from those anticipated. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Past performance is not indicative of future results.
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