In 2017, the investment markets delivered better than expected returns. As we begin 2018, the prospects remain good for another year of solid investment results.

Corporate profits are growing, unemployment is near all-time lows, and the recent legislation provides additional corporate stimulus in the form of lower taxes and less regulation. We would be surprised if the global stock markets do not deliver double-digit returns again in 2018. That being said, when consumer confidence rises to high levels as it has recently, the corresponding complacency can lead investors to take excessive risks. When you take excess investment risks, you increase your exposure to bigger losses when the stock markets decline. To protect against these big losses, we retain investment diversification and discipline. Your portfolio contains a mix of assets that allow you to participate in most of the markets’ gains while providing protection to mitigate losses the next time the markets decline.