Each month we highlight voices we respect from around the marketplace. Here’s what they’re saying…
- The preliminary resolution to the US-China trade war should remove some lingering uncertainty from the global economy and markets. Coupled with central bank activity, equities appear to have a favorable backdrop to continue upward in 2020. US companies are expected to see a rise in earnings this year, rebounding from flattish results in 2019. Although valuations are above longer-term averages, equities do not appear overly expensive given the lower-rate environment. Read more… – Hartford Funds Investment Consulting Group
- The main effect on China’s economic growth from the coronavirus outbreak will likely be one of sentiment, with the government’s response determining the degree to which people are fearful or confident. The good news is that the Chinese government has taken serious actions quickly. Read more… – Vanguard Investment Strategy Group
- Evidence continues to mount that the U.S. economy is experiencing neither a robust acceleration nor an abrupt slowdown. If economic activity continues to expand at close to its current 2% pace, the Fed should be happy to remain on hold for the duration of 2020 after the last two tumultuous years. Futures markets continue to price in a better chance of a cut than a hike this year. But the gap between the Fed’s current rate policy and the market’s expectations is narrower today than it’s been at virtually any time over the past two years. This should help anchor both short- and long-term interest rates. Read more… – Brian Nick, CAIA, Chief Investment Strategist, Nuveen
As always, we continue to believe that one’s circumstances and risk profile should determine the appropriate mix of investments, and not media headlines. Please contact us if you ever have any questions or concerns about your accounts or any news you hear