The return environment in 2018 proved to be challenging, with most major asset classes posting losses for the year [Exhibit 1]. 2018 also saw the return of volatility, which had been at unusually low levels throughout much of 2016 and 2017. While returns were volatile during the first 3 quarters of the year, it was during the final quarter that volatility spiked higher and risk‐assets, such as equities, saw their weakest returns. The fourth quarter sell‐off brought the returns for most segments of the equity and fixed income markets into negative territory, giving back a portion of the strong gains that were achieved during 2017.
Any figures, opinions or investment strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of writing.
This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. Johnson Financial Group does not provide legal or tax advice to clients. Investors should make an independent assessment of the tax and legal implications and determine, together with their own professional advisers, if any investment strategy mentioned herein is believed to be suitable to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment.
The performance data shown represents the past performance of Johnson Financial Group model strategies and does not include management fees charged by Johnson Financial Group. Investment strategies are customized for Johnson Financial Group clients and client portfolios may not reflect the asset allocations and performance in this publication. Past performance is not a guarantee of future results. Asset allocation and diversification do not assure or guarantee better performance and cannot eliminate the risk of investment losses. Investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and investors may not get back the full amount invested. Non-depository investment products offered through Johnson Financial Group are not FDIC insured, not bank guaranteed and may lose value.