2018 Outlook: Porridge, a Nap and Three Bears

We hear many people describe the global macro environment as the “Goldilocks economy,” referring to that fairy tale’s lead character settling on porridge that was not too hot, and not too cold, but “just right.”

In this environment where no recession is looming in the near term and there is little chance of the economy overheating either, over the next 12 to 18 months, we see:

• Returns for U.S. equities that are in line with our longer-term expectations.
• Continued outperformance in international and emerging market equities.
• Solid returns in emerging market debt and private credit, with other areas of fixed income at or below long-term expectations.
• Returns aligned with our long-term outlook for private/illiquid asset classes.