Fourth quarter wrapped up a stellar year for domestic large cap, +31.5% for the year, and international stocks, +21.5%. The S&P 500 Index returns were powered primarily by the Technology sector. Domestic bonds also had a very good year, +8.7%, as did Emerging Market bonds, 14.4%.

Economic growth remains solid in the U.S. Growth outside of the U.S. remains slow although improving modestly. We feel an imminent U.S. recession is unlikely but risks still exist. And it is expected that the combination of moderate growth and technological innovation will continue to suppress inflation below the Fed’s 2% target. With Brexit, trade negotiations and a U.S. election year, we are likely to see some volatility in 2020.

Click here to read our full 4Q19 Capital Market Review.