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Lessons from 2017’s surprises

Freedom Z / Shutterstock
Freedom Z / Shutterstock

The past year turned out to be more bullish than we anticipated. Consensus growth expectations caught up to ours and global earnings jumped-but the magnitude of asset returns surprised us. Most asset classes have performed well, with many delivering double-digit returns, as shown in the chart below.

The events many worried about in early 2017-including the election of a far-right government in France and aggressive U.S. trade policy-didn't materialize. The MSCI ACWI closed at a record high 61 times, and 30-day realized volatility of the S&P 500 Index hit its lowest level since the early 1960s. Other surprises: Inflation fell and long-term bond yields were flat even as the economy improved, while cryptocurrencies posted huge returns.

Five lessons from the past year

core inflation rises back above 2%. 2018 Global Investment Outlook Weekly Commentary Richard Turnill is BlackRock's global chief investment strategist. He is a regular contributor to The Blog .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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