With no key economic data due out today and a quiet week wrapping up, the focus today is on the S&P hitting new record high’s yesterday, following a rise of nearly 23 points to close at 2,930.75.

With earnings season around the corner, and expected earnings growth for the quarter of above 25%, we continue to believe our core thesis remains in place, and the markets are on track for our S&P price targets for both 2018 and 2019.

While trade war talks and rising interest rates remain the focus of the media, consumers and businesses remain focused on the strong labor market and availability of credit, which has led to increased consumer spending and growth in business earnings.

To summarize, we believe the new record highs in the S&P are supported by strong economic data and that a recession is still at least two years away. Therefore, any short-term volatility in the market should represent a buying opportunity and not a reason to start decreasing exposure to the markets.

Past performance is not a guarantee of future results “Index returns are unmanaged and do not include the deduction of fees and expenses. It is not possible to invest directly in an index.”

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