- Market Outlook
- 07/11/2019
- Investors entered autumn with great anxiety about the trade war and Brexit. Those risks have abated, and so have flight-to-quality flows.
- Headline risk into yearend includes trade war news (US, China, EU) and US employment data. Yet we don’t see those derailing market trends.
- The USD is pulling back from the end-September peak, historically a weaker dollar has meant lower risk adversion in both the US and Emerging Markets.
- Equities continue to offer attractive earnings yields relative to bonds; it is hard to resist the appeal, unless one fears a 2008- or 2011-like scenario.
