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VOLATILITY IS BACK





Investors have been caught off-guard with the recent spike in volatility as the most successful strategy of the last decade, selling volatility, unwinds. The fall out has been a 10% correction in equity markets. We expect volatility to persist throughout the year as this shock works its way through the financial markets, however, value is emerging--particularly in late cycle sectors like commodities and financials. We expect a rotation from growth into value over the next twelve months, and do not see a recession in 2018.

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