Feature

'Big adjustment in markets'

S&P 500 up every month in 2017

Strong recovery in Europe

Factor concentration is an issue

Need to be discerning

Japanese equity indices were among the strongest-performing developed markets in 2017 (the MSCI Japan returned 20% in local currency terms). This robust performance came despite a near 5% appreciation of the yen versus the US dollar.

Significant upside

January is the time when commentators opine about the direction of markets and likely macroeconomic trends in the year ahead. They may not focus on certain regulatory and accounting changes which will impact the UK equity market in 2018.

Corporate bonds looking attractive

US stocks have had a chance to finish 2017 in style, as the economic recovery that started two years earlier received an additional boost from the much-publicised breakthrough on tax reforms.