Following last weeks Fed Funds Rate increase, personal-consumption expenditure rose at an annual rate of 1.8%, nearing the Fed’s target of 2%. Fourth quarter U.S. GDP grew faster than originally expected at a revised 2.9% annual rate and exceeding the previous 2.5% estimate. The U.K. crossed its one-year mark left within the European Union this week; the country officially leaves the trade bloc on March 29, 2019. However, the formal start of new trade arrangements will not begin between the U.K. and EU until the end of 2020 to provide a transition period between the two separate groups.

The volatile begin to 2018 continues after one of the worst weeks for stocks in years turns into a sizeable rally in the shortened final trading week of March. U.S. large company and international developed stocks were unable to recover all losses experienced YTD while U.S. small company and emerging market stocks have recovered losses. Many fixed income asset classes continue to be in the red for 2018 but trailing 1-month returns are positive nearly across the board. As interest rate movement has bouted real estate, a small decline in the long end of the treasury yield curve this month coincided with real estate outperforming other asset classes.

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