As the year draws to close it’s timely to reflect on the year that was and start to muse on the outlook for 2019.

It was a tough year for diversified investors. That’s despite the still solid macro-economic backdrop. Global growth looks to come in at around a solid 3.7% and profit growth remained strong. Inflation rose in the US but only to target and stayed low elsewhere. The US Federal Reserve raised interest rates four times as the economic backdrop allowed them to move interest rates closer to neutral. Monetary conditions remained stimulatory elsewhere, though the European Central Bank is on schedule to end its asset purchase programme by the end of the year.