The S&P 500 Index closed last week about 1% away from its all-time high. U.S. equities continue to grind higher on optimism that the slowdown in economic growth will be reversed with a combination of easier monetary policy, encouraging corporate earnings and improving international trade relations.
This week, we’ll see developments in all three of these areas. A number of Federal Reserve Governors will speak on the future of monetary policy, and I expect more commentary surrounding appropriate policy in an economy with strong employment, but very low inflation. In addition, many of the major financial institutions report Q1 2019 earnings over the next several days.
I anticipate stocks to post gains and reach new highs. The environment is primed for gains over the next several months.
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