2019 was an incredibly strong year for financial markets- one that I think surprised all major strategists and allocators. On the surface, asset classes across the board posted positive returns. Our diversified model allocations participated in these returns in a meaningful way despite our lower duration and equity beta profiles. What peaked our interest throughout the year were the extreme moves we saw in some of the underlying factors within the general markets. It’s worth digging a little deeper into some of these underlying dynamics in both fixed income and equity markets which I think help illustrate the varying attitudes investors have expressed on economic growth. We will share our thoughts on what drove some of these shifts, and briefly discuss how these moves shape our portfolio positioning for 2020. Let’s first recap the year to provide a framework for these views.