U.S. economic growth has slowed in 2019. However, the economy is still growing, and we believe it will continue growing through 2020. As we highlighted in our Outlook 2020: Bringing Markets Into Focus, we’re projecting real GDP growth of 1.75% in 2020, slightly below average for this economic expansion.
Market momentum, global participation, and technical support all provide reasons to think gains may not be over for 2019. While volatility is always possible, record highs need not be be feared, and seasonal tendencies may remain a tailwind.
While earnings declined year over year in the third quarter, results still exceeded expectations. Tariffs, ongoing policy uncertainty, and slower global growth have led to this earnings lull, but we remain optimistic that earnings growth bottomed last quarter and is poised to accelerate.