The third quarter is historically the weakest of the year, and 2019 is looking to be no exception, especially after the explosive start that we had earlier in the year. The current economy and bull market are now the longest in history. Wall Street analysts have been crying wolf, calling for a 3% drop in Q1 EPS only to see them rise by 2.5%. This quarter’s results are seen falling nearly 2%. But with elevated geopolitical tensions, ongoing trade disputes, and global economic growth worries, is a potential EPS recession in store? Or, might the Fed disappoint investors by NOT cutting rates at the upcoming FOMC meeting?
On July 23, CFRA reviewed 1H 2019 and explored the key trends, expectations, and predictions for investors as they battle the summertime blues. Led by Sam Stovall, CFRA’s Chief Investment Strategist and joined by Lindsey Bell, CFRA Investment Strategist and Todd Rosenbluth, CFRA Head of ETF and Mutual Fund Research, we discussed the outlook for 2H 2019, including the macro-economic factors at play and the reasons for near-term uncertainty, our forecasts of fundamentals that we think will drive equity prices during the remainder of the year, and the sectors and ETFs that can give investors peace of mind by offering low volatility and high quality.