Wise Investing

2018 Investment Outlook

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 coming quarter. In the coming year, we expect to see a healthy U.S. economy and, at this point, modest equity returns given current stock market valuations.

The following is the Committee’s outlook for 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 constructive as we expect the global economy to strengthen, inflation to rise at a moderate pace, unemployment to remain low and central banks to be relatively accommodative. We believe the greatest risk for investors in 2018 will be overreacting to volatility and navigating the maturing business cycle. Historically, late cycle equity market returns are customarily 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.

Trust services are offered through Univest Bank and Trust Co.

Securities and insurance products are offered through Univest Investments, Inc., member FINRA/SIPC and a licensed insurance agency. Investment advisory services are offered through Girard Partners, a Univest Wealth Management Firm. These affiliated companies are licensed subsidiaries of Univest Corporation of Pennsylvania. Products and services offered are not FDIC insured, are not a deposit of or bank guaranteed, and are subject to risks, including possible loss of any principal amount invested.


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