At the beginning of 2017, a common view among money managers and analysts was that the financial
markets would not repeat their strong returns from 2016. Many cited the uncertain global economy,
political turmoil in the U.S., implementation of Brexit, conflicts in the Middle East, North Korea’s weapons
buildup, and other factors. The global equity markets defied their predictions, with major equity
indices in the U.S., developed ex-U.S. and emerging markets posting strong returns for the year.