Despite mounting political uncertainty, concerns about tariffs, and turmoil in Europe, the economy and financial markets in the U.S. continued to grow in 2018. But recent pullbacks have many wondering if this expansion cycle is coming to an end—and if strong economic fundamentals will help us weather the storm.
Brad McMillan, Commonwealth’s chief investment officer, looks at a number of factors that will affect where we’re headed, including:
- Job growth and consumer spending
- Business confidence and investment
- Government spending and the balance of trade
Most indicators point to slower, but continued growth in 2019. Add in a normalization of monetary policy and increased revenue and earnings growth, and we should expect to see a continued rise in the financial markets as well.