What to expect next from the markets
At the beginning of each year, Vanguard hosts a live webcast to share our market and economic outlook and answer questions from clients. I’ve been a part of this webcast for years, first as Chief Investment Officer and now as CEO, and clients consistently expressed growing concern about what the future may hold.
After a period of historic growth and relative calm, the markets have returned to a more expected up-and-down cycle. The Standard & Poor’s 500 Index finished 2018 down more than 4%—its first calendar-year decline in a decade. And the slump felt even worse because stocks had risen sharply at times, only to end the year 14% below their September peak.
Heading into 2019, clients were understandably nervous after the year-end drop. Ongoing conversations around Brexit, trade wars, and U.S. Federal Reserve policy only added to the uncertainty. But as of the end of February, the S&P 500 was up 11%, showing the difficulty of predicting short-term market movements.
If you’re looking for perspective about what the markets may have in store over the long term, take a look at what our economists say.