The major equity indices such as the S&P 500 (SPX) equity markets are showing their first signs of weakness during the 15% reflex rally since the Christmas Eve low. It really has been an extraordinary run, and if there is going to be a pullback of any kind, it should be from around here. There is no question the economic data in the US is going to slow from the strong 2018 pace, but that is an already known factor and the Fed has taken a much more dovish (re: easy/neutral) approach toward monetary policy. The Fed policy should be more important than the weakening economic data, so we would rather use weakness to add exposure rather than fear it given our positive core fundamental thesis highlighted in our February Macro Slide Deck:
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