In the May issue of our monthly flagship publication, we feature:On the Record by Chief Investment Officer Tony Roth, where he talks about the changes taking place on the global economic growth trajectory that have prompted his team to reevaluate its world view, what it means for the stock market in general, and the weighting on international developed equities, in particular.
May 6, 2019 – Risk markets were jolted awake on Monday morning, as U.S.–China trade risks resurfaced. On Sunday afternoon, President Trump posted on Twitter that he would be ratcheting up tariffs on China beginning Friday, May 10, if a deal is not reached by then. Specifically, the threat is to raise existing tariffs on $200 billion of Chinese exports to the U.S.
May 2, 2019 – Over the past several months, expectations (and hopes) have been building that the Federal Reserve (Fed) may be moving toward rate cuts in the face of stubbornly low inflation, a move that would likely be helpful to equities. No one really expected the central bank to cut rates this week, but it appears that some investors were hoping for hints that it may be tilting more in that direction, and some apparently read the initial statement as just such a hint.