A pause in trade escalation is welcomed as it should allow the global economy to stabilize; however, investors shouldn’t assume trade tensions have gone away.
Inventories tend to have a cycle of their own, growing and contracting several times over the course of an expansion.
The current earnings season has been mixed; lower energy prices and a stronger dollar are headwinds, but health care sector M&A is providing an offset.
The economic backdrop in 2019 has been characterized by weakness in manufacturing being offset by the resilience of services and health of the consumer.
Equities continue to look attractive relative to fixed income, and could very well move higher in the short-term given firmer economic data and a Fed on hold.