SPTL - To Chase Or Not To Chase The Rally?
Global markets have started 2019 on firmer footing after losses in 2018. We see equities and bonds eking out positive returns this year, and still advocate a carefully balanced approach in portfolios due to late-cycle concerns and ongoing geopolitical uncertainties. We caution against chasing the rally in risk assets, particularly in areas vulnerable to growth downgrades, geopolitical risks or sudden shifts in supply/demand dynamics.
Chart of the week
Market pricing of 2019 U.S. interest rate moves, 2018-2019
There is no guarantee that any forecasts made will come to pass.
Source: BlackRock Investment Institute with data