U.S. Mid-Terms Will Provide Short-Term Fuel for the Market

Jack Ablin, CIO of Cresset Wealth Advisors, appeared on CNBC’s “Power Lunch” on October 28, 2018 to discuss the outlook for the economy and markets after the US mid-term elections. He said that typically the markets benefit from a tailwind through year-end after mid-term elections, so the short-term outlook is positive. However, GDP growth at current levels is unsustainable and that, combined with the end of extremely accommodative monetary policies globally, represents headwinds for the markets. Jack believes, however, that these headwinds are a return to normal and do not mean the markets or the economy are going to fall off a cliff. Regarding the trade war with China, Jack is of the view that the current situation is merely the first phase of a longer-term, broader plan in which the US will aim to convince its trading partners to further isolate China with their own trade restrictions.