After all the bullish buoyancy of 2010, the US economy finally looks set to slow in 2019. President Trump’s fiscal stimulus has probably done enough to avert a recession for now, but cyclical concerns are likely to become a major market driver in H2. Regardless, there’s limited room for equity upside in a world of stretched valuations and tighter liquidity conditions, even accounting for the sell-off of late 2018. Greater downside pressure seems inevitable, but risk reducers could provide some comfort. Fed policy will also be a focal point, but for the moment it seems more interested in sustaining the ongoing recovery rather than trying to cool possible overheating. So, what should your US equity strategy potentially look like? See why, despite headwinds, US equities should keep flying high in the near term.
FOR ELIGIBLE COUNTERPARTIES OR PROFESSIONAL CLIENTS ONLY
This document is for the exclusive use of investors acting on their own account and categorised either as “Eligible Counterparties” or “Professional Clients” within the meaning of Markets in Financial Instruments Directive 2014/65/EU. These products comply with the UCITS Directive (2009/65/EC). Société Générale and Lyxor International Asset Management (LIAM) recommend that investors read carefully the “investment risks” section of the product’s documentation (prospectus and KIID). The prospectus and KIID are available free of charge on www.lyxoretf.com, and upon request to email@example.com. Lyxor International Asset Management (LIAM), société par actions simplifiée having its registered office at Tours Société Générale, 17 cours Valmy, 92800 Puteaux (France), 418 862 215 RCS Nanterre, is authorized and regulated by the Autorité des Marchés Financiers (AMF) under the UCITS Directive and the AIFM Directive (2011/31/EU). LIAM is represented in the UK by Lyxor Asset Management UK LLP, which is authorized and regulated by the Financial Conduct Authority in the UK under Registration Number 435658.