To our way of thinking, the Q4-2018 share price selloff in the US equity market really came out of nowhere. The economy is growing at a circa 3% rate, job growth is robust, wages are starting to inch up for the first time in a long time, inflation is mild and corporate profits are growing slowly after a burst of growth due to lower income tax rates. So from a macro perspective, one would not expect a significant correction or bear market is stocks. Yet, this is what we either just had or still in the process of experiencing.
