Alternatives Update 3rd Quarter 2018
In the 3rd quarter, U.S. equity beta rewarded investors. "Buy risk," "buy on the dips," "buy growth", was the path to outperformance. Thanks to a strong earnings season, reasonably tame inflation, and a business-friendly administration, the S&P 500 Index was the clear winner among the various asset class returns in the third quarter (see Figure 1). Chinese equity markets continued to weaken amidst trade war rhetoric and successive rounds of tariffs. Tesla, Inc.'s CEO, Elon Musk's tweets and taunting of short sellers finally caught up with him. The U.S. Securities and Exchange Commission (SEC) fined both Tesla and Musk and required his removal as chairman because of his off-the-cuff comments proposing taking Tesla private.

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Posted on Friday, October 26, 2018 @ 4:18 PM

These posts were prepared by First Trust Advisors L. P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.