Election Results In Line With Expectations
The legislative outcome of the election equals gridlock, not an unusual situation. The additional tax cuts highly unlikely to pass and infrastructure spending might have a chance to pass. International trade still a wild card. (Nov. 7, 2018)
Tailwinds Turn to Headwinds
The U.S. dollar has improved relative to other currencies making it more difficult for U.S. manufacturers to sell goods in foreign markets. Interest rates have had modest increase but still relatively low. Oil prices have not significantly improved but an extra burden to consumers. (Oct. 31. 2018)
U.S. equity engine continues to hum; bond markets flat.
2018 Mid-Year Economic Update
The U.S unemployment rate has declined to 3.9% and will likely continue to decline. Inflation has moved up but not at an alarming pace. In other positive news, consumer confidence remains high. (Aug. 22, 2018)
The U.S. equity market ground higher in the second quarter, with the S&P 500 up 3.43%. U.S. small cap stocks had a terrific quarter, +7.75%, which put it near the very top of all equity markets around the globe. Also noteworthy in the second quarter was the bond market.