4Q 2018 Review Turmoil characterized the equity market in the final quarter of 2018 with the S&P 500 index price falling almost 14%. Shortly after being heralded as the longest bull market ever, with Apple and Amazon eclipsing $1 trillion market capitalizations, the U.S. market fell swiftly over the next three months. More hawkish Federal Reserve policy and tighter financial conditions propelled the market lower with liquidity slowly exiting the global financial system. Likewise, the trade war remained front and center given its determinant role for corporate earnings growth. Fears of recession ensued, and volatility reached a frenetic crescendo with December’s 9% price slide ranking second only to the early 1930s.1 The back-end loaded nature of the weakness felt even more unnerving with the S&P stopping just shy of a bear market, defined as a 20% peak-to-trough decline, by Christmas Eve.