By Mark R. Anderson, CFA

A risk-off tone dominated the financial markets during the quarter as stock indices tanked and interest rates shifted lower on heightened volatility due to uncertainties in the global economy, political leadership and confusing commentary from the Federal Reserve. The Bloomberg Barclays Aggregate Index gained 1.64% in the quarter to finish 2018 with a return of just 0.01%. U.S. Treasury bonds led the way this quarter in a flight to quality not seen since early 2016 as corporate and high yield bonds found few takers given all the worries.