The first half of 2019 has been eventful. Despite some economic and political worries, the markets have not been a bad place to be. Markets have moved up, pulled back sharply, and then bounced back again.
Looking at the fundamentals, it's clear that conditions are better than the headlines suggest. The economy continues to grow at a solid clip while consumers are showing that they are willing and able to spend, and businesses are doing the same thing. Going forward, some slowing is likely, but slowing is still growing.
Another positive tailwind has come from monetary policy. The Federal Reserve has indicated that they are willing to step in with stimulative measures if necessary. With the potential for slowing job growth and rising concern around trade, an upcoming rate cut is certainly possible.
Overall, the continued market recovery is encouraging and the economic environment remain supportive. The solid economic fundamentals should support markets throughout the remainder of 2019. While risks are real and though further volatility may emerge, the most probable course is more appreciation.
Presented by: Robert J. Comeaux, Jr., Walter A. Bond, Raymond A. Daigle, Jr., Edward Ian Blanchard, Doug Tillman & Mollie Taylor
Authored by Brad McMillan, senior vice president, chief investment officer. © 2019 Commonwealth Financial Network®