Economic Upswing Remains Healthy; Stay Overweight Equities With Cyclical Bent

Here's What We're Thinking

September 20, 2017

Global markets continue to benefit from solid fundamentals, bolstering our bullish positioning strategy. The economic expansion is running near highs for this cycle with global GDP running at 3%+ aided by both solid consumer spending and a recovery in business investment outlays. The broadening out of economic momentum from the U.S. to other major economies including Canada, Europe and Asia has improved the resiliency of the global economic expansion, now in its ninth year.

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Fundamentals Remain Solid; Buy Any Sept./Oct. Seasonal Weakness

Here's What We're Thinking

September 7, 2017

Markets have recovered from a recent bout of weakness but signs of hesitation and uncertainty remain. Risks surrounding geo-political events (North Korea nuclear weapons testing), domestic U.S. politics (widening Russia – White House probe, gridlock in Congress on health care and tax reform), natural disasters (Hurricanes Harvey and Irma), commodity price swings (oil falling/rising 10%), impending changes to monetary policy (Fed starting to shrink its balance sheet), etc. have resulted in markets trading in wider ranges over the late summer in thin trading conditions. These important event risks and the lack of a meaningful market correction of 7% or more for over a year-and-a-half while the S&P500 trades near recent all-time highs leaves the market susceptible to a pullback during the seasonally weaker September-October period.

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