2018 Q3 Global Markets Review & Outlook

Global equities continued rebounding in Q3, with the MSCI All Country World Index and finishing near all-time Highs. In Q3, Brexit negotiations, volatile commodity prices, tariffs, widening Italian budget deficits, interest rates, currency swings and corporate earnings drove headlines and spurred fears within developed economies.

  • Growing Investor Confidence: Investor optimism typically increases as a bull market matures. Recent correction angst notwithstanding, US sentiment has improved but is not yet euphoric. Meanwhile, growing optimism in the US remains unmatched by European investors.
  • Strong Economic Drivers: In both developed and emerging markets, economic drivers remain strong. We believe these fundamentals will come to the forefront as sentiment improves.
  • Global Political Gridlock: In much of the developed world political gridlock persists decreasing the likelihood sweeping legislation potentially hurting equities passes. With US midterms in Q4 the president’s party typically loses power increasing gridlock. US equities have risen in 87% of midterm year Q4s—and each of the two subsequent quarters.
*The foregoing information constitutes the views of Fisher Investments based on information believed to be reliable. There can be no assurances that Fisher Investments will continue to hold these views. These views may change at any time based on new information, analysis, or reconsideration.
About Fisher Investments

Founded in 1979, Fisher Investments is an independent, fee-only investment adviser with $189 billion under management.* Fisher Investments maintains four principal business units, Fisher Investments Institutional Group, Fisher Investments Private Client Group, Fisher Investments 401(k) Solutions Group and Fisher Investments Private Client Group International, which serve a global client base of diverse investors. The clients of Fisher Investments and its affiliates include over 100,000 clients. Founder and Executive Chairman Ken Fisher’s “Portfolio Strategy” column for Forbes ran from 1984 through 2016, making him the longest continually running columnist in the magazine’s 90+ year history. He has also authored several New York Times bestsellers on finance and investing. (*As of 09/30/21)