Has the return of volatility changed your bullish view?
No. Actually, if anything, it has made us a little more convinced that we're going to get there. We'd had a very big run off the election over 30%, and in an environment like that, things get a little bit extended and you don't have enough skeptics to drive the wall of worry. I think the volatility that we've had the last three or four months was overdue, and has now kind of restored some semblance of worry in the market and caution that you need to really fuel the next advance. I'd even say it provides a kind of springboard for the next advance. If you think about it, why would someone sell with the market down 10%, because a lot of people did? They think, this is the end of the world. China's blowing up. Trade tensions ... Facebook's in trouble, wage inflation, these various worries. You get through all that and lo and behold, the market doesn't drop 40% like they thought. What happens after this period is people step back and go, what was I thinking? What was I worrying about? The fundamentals are really, really solid here. I should be willing to pay more for stocks, not less. That should actually fuel the next advance. We think we're on the edge of that right now.
Views as of 5- 23-2018 and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector. International investing involves special risks including currency risk, increased volatility, political risks, and differences in auditing and other financial standards. Federated Global Investment Management Corp. 18-74641 (6/18)