Consumption disruption in 2019?
The U.S. consumer has been a significant contributor to domestic economic growth in 2018. Will consumer consumption be hit by inflation in 2019?
After the most expensive midterm elections in U.S. history, the people have spoken.The “Blue Wave” was smaller than forecasted, as Election Day 2018 delivered a split legislative body with Democrats winning control of the House of Representatives and Republicans increasing their majority in the Senate. What does this mean for investors?
“Yesterday’s outcome was what we expected: a slight repudiation of President Donald Trump that will lead to a continuation of Washington gridlock, which we believe the markets have already taken into account,” said Derek Hamilton, Ivy Chief Economist. “However, we anticipate the Democrat-led House will launch a number of investigations into President Trump and his administration, which could likely stall parts of the Trump agenda and trigger bouts of market volatility.”
Looking ahead, Ivy anticipates few legislative items to gain traction in 2019. Maybe infrastructure, which we believe could be viewed favorably. However, the markets are wary of the lack of fiscal restraint out of Washington, and a rush of bipartisanship is unlikely in the near term. Stay tuned for continued in-depth analysis of the 2018 midterm election results, their market impact and our 2019 outlook.
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Past performance is not a guarantee of future results. Investment return and principal value will fluctuate, and it is possible to lose money by investing.
The opinions expressed are those of Ivy Investment Management Company and are not meant as investment advice or to predict or project the future performance of any investment product. The opinions are current through November 2018, are subject to change at any time based on market and other current conditions, and no forecasts can be guaranteed. This commentary is being provided as a general source of information and is not intended as a recommendation to purchase, sell, or hold any specific security or to engage in any investment strategy. Investment decisions should always be made based on an investor’s specific objectives, financial needs, risk tolerance and time horizon.