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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ETON Advisors Newsletter - Review January 2018

The year 2017 will be remembered for its volatility: volatile weather, volatile emotions, volatile politics. But in financial markets, volatility was conspicuously absent in 2017. In fact, if we define volatility as day-to-day fluctuations in asset prices, then volatility was perhaps its lowest ever in the year just ended.

Nowhere was the absence of volatility more noticeable than in global equity markets which exhibited even less volatility in 2017 than did global Read more…