The Decline of Western Centralization, Part II

I am pleased to share with you Eye on the Market Outlook 2019: The Decline of Western Centralization, Part II. This year’s cover repeats last year’s punch bowl theme, but with weather conditions worsening now that the spigot is open and liquidity is being drained. For the first time in 20 years, markets will have to survive without support from central banks. While equity valuations are cheaper after the fall selloff, tighter monetary policy, shrinking excess capacity, slower global growth and unresolved trade issues will limit the market rebound in 2019. While we expect US GDP and profits to continue to rise, they don’t always translate into rising asset prices this late in the cycle, particularly with the shift by the Trump administration away from its market-friendly 2017 policies.

Have a great New Year.

Michael Cembalest
J.P. Morgan Asset Management

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