Green shoots on a pick up of economic activity in 1H20 continued this week (industrial production & housing as well as personal income) as sentiment has almost become euphoric. Not only is the trade deal driving sentiment, but also the unprecedented money printed by the FED. We have seen the latter occur before and how the positive effects where off fairly shortly post the waning of the stimulus. Thus, despite these high expectations, across our model portfolios we favor value vs growth and dividend paying stocks as we de-risk portfolios going into 2020. The blip in growth in 1H20 in our view will be short lived (6-9 months) thus our conservatism. We continue to view favorably the trends in EVs (electric vehicle) going into 2020 as that is a significant theme being played out across our growth portfolios.
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