In this abbreviated holiday version we briefly recap some of the key themes we discussed this year before setting our sights on the year ahead.
“Slow steaming” is a term used in the shipping industry when a ship slows its speed to conserve energy. To adjust its course, a ship can always rely on fuel reserves to reach its next port. Similarly, the Fed continues to conserve its energy by raising rates, while economic growth is strong, to prepare for the next economic slowdown when rate cuts may be required.
Upcoming midterm elections, trade policy, the Fed and fears of recession are distractions that leap off the headlines. Lost in translation, however, is a U.S. economy growing above trend with continuing signs of acceleration.
The months ahead promise investors a challenging balance of rewards and risks.
As we approach the halfway point of 2018, investors have encountered many twists and turns. Globally synchronized economic growth has faded into U.S. dominated economic growth.
Markets have taken investors on a daily roller coaster ride like we’ve not seen in years, but this is typical for late-stage bull markets.