A selloff in the final trading minutes of the year pushed stocks into the red for the shortened holiday week. technology stocks lagged for the week, led by Apple after some analysts suggested demand for the iPhone X was lower than expected and there was backlash against throttling performance of older phones. The market's muted reaction in the first full week of trading after the passage of the tax bill suggests most of the benefits were widely expected and are likely already baked into prices.

Weekly Returns

FTSE All-World ex-US: (+0.6%)
US 10 Year Treasury Yield: 2.41% (-0.07%)
Gold: $1,303 (+2.2%)
EUR/USD: $1.120 (+1.2%)

Major Events

Our Take

For those invested in a strategic long-term allocation, this was rewarding and stress-free. We don't see any immediate catalyst for what would cause volatility to rise to more normal levels, but we suggest investors be ready for it to happen eventually. 2017 was also a good year for many stock-pickers. The trendiest names, such as Apple, Amazon, Facebook, Netflix and Tesla were all up around 50%. This makes the new year a great time to revisit allocations and ensure your strategy fits your long term goals and risk tolerance. Historically, most stock pickers and market timers don't fare well over full market cycles and sector rotation can happen quickly and intensely.