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February Equities Outlook in 5 Charts

1. The U.S. consumer remains a bright spot amid slowing economic activity abroad and a cooling U.S. corporate sector.


2. Equity indices have recovered the bulk of their losses from the fourth quarter and valuations appear fair. Given a more challenging macro picture, fixed income has become the more attractive asset class.


3. Some sectors, such as Tech and Industrials, have reaped strong year-to-date returns. Given continued volatility and slowing trends, this has created a case for more defensive sectors.


4. Political risks and slowing economic data has created a tepid view toward developed international markets versus the U.S.; however, markets have already discounted much of this risk.


5. Sentiment toward emerging markets equities turned positive in mid-2018, and investors continue to show confidence in the region due to a more dovish rate environment and expectations for further stimulus from China.


The source for all charts is Bloomberg.


Disclosures: This is for informational purposes only and is not intended as investment advice or an offer or solicitation with respect to the purchase or sale of any security, strategy or investment product. Although the statements of fact, information, charts, analysis and data in this report have been obtained from, and are based upon, sources Sage believes to be reliable, we do not guarantee their accuracy, and the underlying information, data, figures and publicly available information has not been verified or audited for accuracy or completeness by Sage. Additionally, we do not represent that the information, data, analysis and charts are accurate or complete, and as such should not be relied upon as such. All results included in this report constitute Sage’s opinions as of the date of this report and are subject to change without notice due to various factors, such as market conditions. Investors should make their own decisions on investment strategies based on their specific investment objectives and financial circumstances. All investments contain risk and may lose value. Past performance is not a guarantee of future results.

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