In addition to slowing global growth and trade tensions, the US Federal Reserve’s (Fed) 100 bps of tightening in 2018 was clearly a headwind for risk assets. The rate hikes pushed real yields on US cash into positive territory again, attracting flows away from longer duration risk assets. Steady rate hikes and reasonably hawkish Fed guidance also raised the discount rate on equities, contributing to a rather sharp derating despite strong earnings growth. Higher rates put upward pressure on the dollar and the cost of credit, tightening financial conditions for corporates. And finally, the steady rise in yields clearly weighed on certain interest-rate sensitive areas of the economy, most notably the housing market.