We belive that this year will be a "flat-mode" or a "wait-and-see".
The US economy is still tonic and the data on payrolls, unemployment and spending are positive. However, we believe it is possible that a slowdown in corporate earnings can change the Fed's course. Furthermore, the excessive uncertainties of Brexit, the EU and the commercial war with China could significantly damage corporate companies. In our opinion, the S&P500 index could undergo a retracement of up to 2,500/2450 points as a first objective. In the event that the recession should arrive in the US, we do not exclude a second target at 2,300/2,250 points.
The US economy is still tonic and the data on payrolls, unemployment and spending are positive. However, we believe it is possible that a slowdown in corporate earnings can change the Fed's course. Furthermore, the excessive uncertainties of Brexit, the EU and the commercial war with China could significantly damage corporate companies. In our opinion, the S&P500 index could undergo a retracement of up to 2,500/2450 points as a first objective. In the event that the recession should arrive in the US, we do not exclude a second target at 2,300/2,250 points.
