Risk assets sold off sharply during the 4th Quarter, leading the domestic stock market down for its worst annual performance since 2008. Investors spurned healthy US economic data, as unemployment remained below 4%, inflation (as measured by CPI) held above 2% and corporate earnings continued to post impressive double-digit growth. Bonds proved more resilient but still the Barclays Global Aggregate Bond Index lost -1.2% in 2018. Towards the end of the year, credit spreads began to widen, signaling concern for lower liquidity and the overall quality of corporate bonds. As a result, high yield bonds fell -4.5% in Q4.