Insights Trade Turmoil Returns

Rebecca Patterson

Aug 06, 2019

Highlights 

  • U.S. equities had their worst day so far in 2019 on Monday, with selling mainly driven by rising U.S.-China trade war-related fears
  • The speed of Monday's selloff partly reflects the growing influence of systematic and algorithmic trading strategies; however, we would also note that summer liquidity conditions can exacerbate market moves
  • We would view this, as any equity selloff, in context of the macroeconomic backdrop — while global growth is slowing, there are still significant supports for cyclical assets out there, including strong labor markets and consumers as well as easy global monetary policy
  • Our decision to modestly reduce equity exposure in mid-July has benefited clients; for now we do not see any need for further allocation changes
     

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Chief Investment Officer
Rebecca is Chief Investment Officer of Bessemer Trust. She is also a member of the firm’s Management Committee.
Conviello-John
Senior Investment Strategist
JP is responsible for performing in-depth macroeconomic research and financial market analysis as well as delivering customized asset allocation and investment recommendations to clients.