ETON Advisors Newsletter - July 2018

In last quarter's Outlook, we suggested that financial markets are caught in a tug-of-war between the positive impact of late-cycle economics and negative forces connected to monetary policy and geopolitics.

As we look toward the second half of 2018, we reiterate our assertion that this struggle between opposing forces is ongoing and will continue for the near-term. Whether the positive impact of economic growth is likely to exceed the negative impact...

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ETON Advisors Newsletter - April 2018

After remaining dormant for most of 2017, market volatility returned with a vengeance in the First Quarter of 2018. Concerns over rising interest rates and inflation overcame positive news on economic growth and corporate earnings, triggering a selloff in both bonds and stocks in early February. The VIX index of implied equity market volatility spiked, startling some investors who had become complacent about downside risk:

After declining by over -10% (the traditional...

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ETON Advisors Newsletter - Outlook, January 2018

Exceptionally low market volatility and improving economic growth produced healthy returns for investors in 2017 across a wide swathe of asset classes and markets. In fact, volatility was so low and investment performance so high in 2017 as to make it difficult to imagine that it could be repeated in 2018.

The set of factors and circumstances which together produced 2017's robust investment returns might be described as a "Goldilocks" scenario, one in which the...

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