weekly-market-notes-8211-march-11-2019

Weekly Market Notes – March 11, 2019

Summary

The most recent economic data fits with our 2019 outlook that suggests economic growth is likely to slow this year but recession prospects remain very low.

The current weakness in the equity markets should be viewed within the confines of a consolidation phase that is likely to continue until such time as a firm trade deal with China is drawn and the U.S. economy signals that the first-quarter weakness has run its course.

Investors should focus on sectors that are exhibiting the strongest relative strength, including utilities and REITs as defensive sectors, Industrials which should benefit from positive trade talks with China, and communications services.