Good Afternoon,
Attached is the most recent “Uncommon Sense” piece by Michael Arone of SSGA. In it, he discusses two different events before year end that will affect market returns for the end of 2018 and beyond.
1.) G20 Summit: Can President Trump and Xi put aside differences and outline a U.S.-China trade deal? Despite much politically charged rhetoric it is in the best interest of both parties to make progress toward a deal they can sell to their constituents.
2.) December Fed Meeting: It is almost certain that the Fed will raise rates by 25 bps in December, but what type of rhetoric will surround the decision? If the Fed indicates that we are nearing a neutral range, it is likely that there will be less rate hikes in 2019, opening the door for a small year-end rally.
It is interesting that two events, so close to one another on the calendar, can have longer term implications as we look toward 2019 and beyond.
Thanks,
Pete
Peter Malone, CFA
Research Analyst
Direct: 617.226.0030
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