Although we expect a deceleration, the long economic expansion should continue in 2019.
Central banks should continue to normalize interest rates this year, but we expect a slower pace of rate hikes going forward.
We expect to see some cost pressures emerge this year on the labour front, lifting overall inflation modestly, while we expect rates to retrace much of the drop experienced in Q4.
Although earnings growth will slow from 2018's pace, equity prices are supported by more reasonable valuations and we expect earnings growth in the 5-10% range.
Later stages of the business cycle are usually accompanied by increased volatility and the current geopolitical landscape provides plenty of opportunity for surprise.
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