Focus remains on year-end ramp driven by EPS. With volatility back to the low, the S&P 500 (SPX) in close proximity to record highs, and choppy grind higher, there is much discussion about how long the current economic and market cycle can last. We believe the combination of a solid economic backdrop, historically high business and consumer confidence, and better-than-expected earnings growth continues to suggest there is a long way to go. There is no doubt the unpredictable news backdrop of a potential trade war with China and a rise back to 3% in the 10-year US Treasury yield can cause increased volatility, but the fundamental backdrop commands using it as an opportunity to add risk:
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