Emerging Money Daily Audio Call December 15 - As Wall Street strategists now feel comfortable upgrading SPX forecasts for 2018/9 based on tax reform, we see the headline index running higher as allocations into Industrials, Banks, and Retail pick up momentum.
Value over growth works if there is truly macro growth but with that requires to the Fed to stay complicit in the rally. More commentary yesterday supports the Feds dovish stance. Our older school experience with the Fed leaves us feeling more cynical they will step too hard into the market after being too reserved. But we will be happy to be wrong...
Global allocations are suffering as institutions assess US EPS growth over EU and Japan. EM equities are facing their toughest technical test of the year, almost one year after they put in a solid base after also struggling into late December. Will this be another turning point?
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