Common Sense is Not Always Common

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On this day in 1776, Thomas Paine published the pamphlet “Common Sense” advocating American independence. Unfortunately, common sense is not always common. Today’s Wall Street Journal reported that many investors are emboldened by the market record highs and ultra-low volatility and, as a result, are abandoning many of their hedges designed to shield them against market downturns. Global Perspectives is forecasting a prosperous 2018. Accelerating corporate earnings, broadening manufacturing, and consumer strength and confidence in this continued low inflation environment are indeed a recipe for success. However, market pullbacks are normal and investors should remember that the lineup is not always a straight line. As market optimism builds, investors may feel a little FOMO – fear of missing out. But diversification to ride market bumps is plain old common sense. Meanwhile, the record high job openings (JOLTS) fell to a six-month low. Why? Because employers went on a hiring spree at the end of the year. Please read more about our 2018 market outlook in Global Perspectives 2018 Forecast - Pro-Business Economy Unleashes Growth.

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