Random Thoughts

Fundamentals tell you “what”, but technicals tell you “when” and “how far”.

The recent selloff in stock prices was triggered by the elevation of trade tensions between the U.S. and China, which caused the S&P 500 to test an important technical support level.

Other benchmarks also challenged, but did not break, critical support levels. Should these levels continue to hold, expectations are that the market does not believe that the trade discord will be protracted or widened, nor lead to a worldwide economic slowdown or, worse yet, a global recession.

Even though we forecast a slight softening of U.S. and global economic growth over the next two years, we do not foresee recession, which we think would allow equity prices to regain their upward trajectory