Dovish central banks, strong fundamentals and an improved outlook for China suggest that all stars are aligned for emerging markets. How long can the year-to-date rally continue?
With last year���s stock market volatility continuing into the first week of 2019, it is clear that investors are to an extent, the volatility seen at the end of 2018 was driven by concerns around the potential for an earnings recession in 2019.
With last year���s stock market volatility continuing into the first week of 2019, it is clear that investors are anxious. This anxiety is not without merit: indeed, economic data over the last two weeks seem to suggest a material slowdown in growth.
Trade was the hot topic of 2018, with the U.S. administration engaging in negotiations with many major trading partners.
A slowdown is coming sooner rather than later. Investor should remain cautiously optimistic to environment growth, with a bias on quality and eye on duration.
After a dramatic escalation in trade tensions between the U.S. and China early last week, the Chinese yuan depreciated significantly against the U.S. dollar.
The U.S. economy should slow but not stall in 2019 due to fading fiscal stimulus, higher interest rates and a lack of workers. Even as unemployment falls further, inflation should be relatively contained.
On July 31st, The Federal Reserve (Fed) cut rates for the first time since 2008. In the immediate aftermath of this cut, the U.S. Dollar strengthened.