(Originally Posted August 20) America’s decade-long bull market may finally be coming to an end. Well, maybe. After 20-months of nonstop trade disputes, uncertainty has become the greatest threat to growth. Last week’s violent market selloff – caused by the so-called inverted yield curve – sent stocks down more than three percent on Wednesday only to rebound partially by Friday as bond yields stabilized. Complicating the outlook is the University of Michigan’s consumer confidence index, which recorded a seven-month low in August, despite record low unemployment.
The White House is laser-focused on the economy as we head closer to 2020. Pay attention to the Federal Reserve’s annual meeting this week in Jackson Hole, Wyoming, for the Fed’s views on the state of the economy and possible future cuts to interest rates. In the Land of Uncertainty, markets will move with shocking velocity to even the tiniest sliver of news.