The Week Ahead – Azaleas

Investments & Economy The Week Ahead Grow

The Week Ahead – Azaleas

Andrew Chan, CAIA, Co-Chief Investment Officer

| 4/4/18 7:54 AM

market commentary cropped

Welcome to “The Week Ahead” where we take a moment to provide our thoughts on what we can expect in markets and the economy during the upcoming week.

Apologies for the later-than-normal update; while I wish I could say I was in San Antonio watching the NCAA Men's Final Four, I was actually out with a cold. Congrats to the Villanova Wildcats and the Notre Dame Fighting Irish for winning their respective NCAA tournaments! Exciting games, much like the first quarter of 2018! A large run up in January, followed by the first real glimpse of volatility in February, and then continuing on through March. The S&P 500 saw its first negative total return quarter since the third quarter of 2015. The backdrop for that 2015 quarter? Greek bailouts and China surprising investors by devaluing their currency multiple times within a week. Investors sold off Chinese equities on the fears that the Chinese economy would have a hard landing, prompting a mass-scale sell of emerging markets, which then bled through all global risk assets. This time? Besides the a-much ballyhooed trade war headlines, much of the volatility has been emerging from the tech sector. The new quarter will bring a much needed earnings season to help investors focus back on the fundamentals.

For this week, Friday’s employment report will be the main economic indicator that investors will be focusing on. However, with trade wars and tariffs still much on many investor’s minds, the U.S. trade balance report will likely be something to be watched more closely going forward. As exciting as the recent market volatility has been, the other main event for this week is Tiger Woods' much anticipated return to the Masters Tournament at Augusta National Golf Club! Keep your eye out for the beautiful azaleas that line the course.

Data deck for March 31 – April 6:

Date	Indicator	Period
April 2	Construction Spending	February
April 2	ISM Manufacturing	March
April 3	Total Vehicle Sales	March
April 4	ADP Employment Report	March
April 4	ISM Non-Manufacturing	March
April 5	Initial Jobless Claims	----
April 5	Trade Balance	February
April 6	Employment Report	March

IMPORTANT DISCLOSURE INFORMATION

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by First Foundation Advisors), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from First Foundation Advisors. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. First Foundation Advisors is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the First Foundation Advisors’ current written disclosure statement discussing our advisory services and fees is available for review upon request. Please Note: First Foundation Advisors does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to First Foundation Advisors’ web site or incorporated herein, and takes no responsibility therefore. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

Andrew Chan, CAIA, Co-Chief Investment Officer

About the Author

Andrew Chan, CAIA, Co-Chief Investment Officer

Mr. Chan co-leads the strategic investment committee and is responsible for overseeing First Foundation Advisor’s investment solutions platform which includes conducting investment manager research for both traditional and alternative investments as well as asset allocation guidance for portfolio construction. As a member of the investment committee, he provides market commentary and investment insights to clients. Additionally, Mr. Chan serves as a senior executive on the business strategy committee providing guidance on firm wide initiatives. With over 15 years of wealth management experience, Mr. Chan has played key roles across various aspects of investment and wealth management. Prior to joining First Foundation Advisors, Mr. Chan was most recently a portfolio manager at U.S. Trust where, in addition to his daily responsibilities, he served on numerous national committees including the investment manager committee, the portfolio model committee, and the strategic technology committee. He also served on the in-house strategic consultant committee reporting directly to the President of U.S. Trust. Mr. Chan is a graduate of the Wharton School Executive Program on Investment Management and holds a Bachelor of Arts degree in Business Administration from the University of California, Riverside. He is a Chartered Alternative Investment Analyst (CAIA). Mr. Chan has previously served as an exam working group member and as an exam grader for CAIA. A member of the CAIA SoCal Executive Board since 2015, Mr. Chan has served as executive chapter head since 2017. Read more