- Who would have been able to predict that the U.S. would have another great year, let alone that international markets would outperform it?
- Who would have thought that the Growth style would outpace Value after Value’s great success in 2016?
- And what about bonds having a mostly positive performance in the midst of all this while the Federal Reserve moves its levers to increase interest rates?
All of this points to the difficulty for any investors who believe they can out-think the collective actions of the market. This is yet another year that only the very lucky market timer would have outperformed the benchmarks.
With many asset classes returning double digit returns, most people’s financial plans are looking better now than they did at the beginning of the year. Of course, those plans are designed for the long term, so when we experience a downturn, the plans have taken those into account as well. However, the fact is that most of us should feel better (at least financially) having had a nice quarter topping a great year in the markets.