When Doves Fly the Bull Cycle Remains
The Federal Reserve recently appeared to suspend its plan to raise rates four times this year, shifting from hawkish to dovish, at least for now. As such, the Fed's focus seems to be less on controlling growth and more on controlling inflation – or re-inducing inflation. This pause should make the cost of capital more transparent, a step we think will be broadly positive for multiples, investor confidence and earnings over the next few months. Earnings growth for 2019 overall could be around 5%, no doubt prompting upward earnings revisions in the first half of the year. We believe this shift may be just the thing to re-energize the longest bull market in history. To learn more, please listen to this this audio recording from our Chief Investment Officer, Chris Hyzy.
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