From an economic standpoint, we believe that growth in the U.S. will remain above potential in the coming quarters, but it seems unlikely that the robust growth seen in 2Q18 will be sustained.
US economy, equities
With recent comments from the Federal Reserve sounding more accommodative and evidence of a positive turn in trade negotiations, it felt as if equity markets were finally set for some relief.
Following two years of double-digit positive performance, emerging market (EM) equities have reversed course this year.
The month of October saw average hourly earnings for production and nonsupervisory workers rise by 3.2% from a year prior, the fastest rate of wage growth since April 2009. Many investors are concerned that if wage growth accelerates further, inflation wi