CWM Third Quarter 2019 Investment Commentary

When I joined CWM in September 2016, financial market headlines were being dominated by the threat of Brexit, looming US election risk, and a search to understand the economic implications of a very low-yielding 1.5% ten-year US Treasury. Three years and about 500 emails later, the outcome of Brexit remains in question, US election risk looms once again, and the ten-year US Treasury still yields just 1.5%. Along the way and buoyed by a strong economy and a helpful tax cut, the S&P500 has returned approximately +45% cumulatively over the past three years, vastly outpacing the total return for both international stocks and traditional fixed income. Over this period markets have overcome an abundance of political drama, a US government shutdown, a quantitative tightening cycle, and a -20% temporary drawdown on global equities. Risk has been rewarded because the economy continues to expand, corporate earnings continue to grow, inflation remains benign and both credit conditions and monetary policy remain accommodative.

So, now what?

CWM 3Q19 Investment Commentary

Disclaimer: Certain content has been obtained from sources that CWM believes to be reliable; however, CWM cannot guarantee the accuracy of such content, assure its completeness, or warrant that such information will not be changed. The commentary is based upon the opinions of CWM, and the data available at the time of publication of this report, and there is no assurance that any predicted results will occur. Information and opinions discussed in this commentary may be superseded, and we do not undertake to update such information.