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Insights Trade Turmoil Returns
Aug 06, 2019
- 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