November 29 2018

2019 Market Outlook

As expressed in Sep18, with EM valuations trashed and US stocks still at stellar high levels, something had to give. US stocks finally fell by about 8-9% in Oct18, just enough to shake the Fed’s tightening course and place the threat of a slowing global growth to everybody’s front cortex. This reset being done, this should clear the way to a year-end/early 2019 rally, as the bull market momentum is not dead and there might be a couple of rabbits to pull out of the China-US tariff-war. Having said that, pressures have increased on the funding front for consumers and companies alike, and the lack of inflation still raise the spectre of a very possible stagflation to come. As everybody debates whether this is for mid19 or 2020, gearing portfolio towards a more conservative approach is the right tack.

360 Advisory – Markets