Investor confidence was shaken by talk of trade wars, the returof inflation, interest rate increases, and the potential regulatory clampdown on the use of online users’ data.
Recent leading indicators are still not pointing to elevated recession risks, and earnings momentum is positive which suggests a resumption in market gains.
The U.S. Federal Reserve has essentially been matching the rise in economic growth with equivalent increases in interest rates.
Investment Outlook
We anticipate that this period of uncertainty will subside over the next quarter as solid economic fundamentals reassure investors.
Near term, a continuation of the bull market for equities is expected; however, longer-term concerns are building.
Our strength in selecting high-quality businesses at historically reasonable valuations should provide portfolios with the ability to withstand the inevitable market shocks.
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