Global Investment Outlook and Strategy
March 8, 2017
Sparked by fears that inflationary pressures might cause the Federal Reserve to tighten monetary policy at an accelerated pace, global equities suffered a modest correction in early February, only then to have the ensuing mid-month snapback briefly short-circuited by trade war jitters at month’s end. Global financial markets may continue to be volatile going forward as investors fret over a laundry list of risks including tightening global monetary policy, peaking economic momentum, rising global debt, and mounting trade tensions. However, we believe the outlook for global equities remains skewed to the upside given favorable macroeconomic conditions, stimulative fiscal policies, and improving corporate earnings. Business and investor confidence has remained elevated post the 2016 presidential election as the Trump administration continues to implement business-friendly policies. We believe that the combination of increased market volatility, lower stock correlations, and other late-cycle dynamics bodes well for the relative outperformance of both growth and active equity strategies in 2018. A continued reduction in Fed balance sheet purchases and a gradual shift in consensus for a faster pace of increases to the Fed Funds rate during 2018 also helped push interest rates higher. While Inflation remained contained during February, we believe an uptick is likely before year-end. The Fed’s balance sheet reduction removes surplus cash from the system, and we expect the resulting increase in financing costs to be passed through to consumers.
For more details, including a longer discussion on U.S. tax reform, please see Sit Investment Associates’ January 2018 Global Investment Outlook and Strategy paper. Click here: Global Outlook and Strategy (Adobe Acrobat) or e-mail us at: firstname.lastname@example.org.
MMAF Has Awarded Over 16,500 Grants
Since its inception in 2005, Minnesotan’s Military Appreciation Fund (MMAF) has awarded over 16,500 grants totaling over $10.5 million to Minnesota military personnel and their families. MMAF is a non-partisan, non-political 501(c)(3) non-profit corporation. It is a statewide fundraising initiative by the citizens of Minnesota. Its mission is to say “thanks” to Minnesota service members and their families by providing cash grants to those who are making sacrifices in the defense of our freedoms in combat zones around the world.
The tragedy of 9/11 compelled the late Eugene C. Sit, founder of Sit Investment Associates Inc., to create MMAF in order to thank and give back to Minnesota service members. Sit Investment Associates Inc. continues to support the efforts of MMAF.
To donate and learn more about Minnesotans’ Military Appreciation Fund, please visit the website at www.thankmntroops.org.