Today’s economic landscape may challenge the performance of traditional investments going forward. Recent positive cyclical momentum looks set to continue for some time, but long-term structural headwinds remain firmly entrenched. Despite strong growth, low interest rates could challenge investors throughout 2018 and beyond.

Investment grade bonds’ yield and lengthening duration over time

S&P 500 Index annual returns based on prior year's earnings growth

While business fundamentals for the energy sector remain generally supportive, investor sentiment, especially for MLP and midstream equities, remains particularly negative. This has resulted in historically cheap valuations for energy infrastructure.

Benefiting from their floating rate coupon and position at the top of the capital structure, senior secured loan prices remained relatively steady in the face of rising short-end U.S. Treasury yields and a decline in U.S. equity prices.

S&P 500 Index daily price moves

Year-over-year change in inflation expectations and Treasury yields

The CBOE Volatility Index has experienced a sustained rise in 2018

FOMC's latest projections for the target federal funds rate and real GDP

Spread between 10-year and 2-year Treasury notes