here has been no shortage of optimism in the financial markets as evidenced by the recent advances in the indexes. Most recently, markets have reacted positively to the prospects of several viable vaccines which will hopefully be available by the New Year.
I write this outlook on the day of the federal election. While the immediate aftermath may cause some investors concern, in the long term it’s fundamentals that drive markets. Hopefully, politicians will take some concrete action to make our country a desirable destination for capital and investment.
Global economic growth will continue to deteriorate over the remainder of 2019 as trade conflicts are having an effect on fundamental economic events. Evidence of the impact of the disruption caused by these trade concerns can be seen in the bond market where rates are reflecting higher expectations of a slowdown and in the increasing volatility in the equity markets.