Global growth is expected to slow in 2019 with many believing that any recession will likely be pushed into 2020. Expect some rebounding in European and Asian growth, regions that underperformed the US market last year.
There are several fiscal policy actions underway in Europe that should be slightly stimulative in 2019 and the European Central Bank has yet to raise rates. What’s crucial is the degree to which China decides to re-stimulate their economy and there is hope that the US-China trade war will soften. The movement to more defensive stock positions will be a key in 2019.
During periods of market turbulence, we believe that if our clients’ asset mix of stocks, bonds, and cash appropriately reflects their financial goals, time horizon, risk tolerance, and personal circumstances, sticking with their investment plan is the correct path to take.