Sage Advice Tactical ETF Quarterly Market Review 2Q2019

Going into the third quarter, the backdrop for equities appears tilted moderately positive for investors, with growth trends slowing, but recessionary concerns still on the more distant horizon and central banks willing to respond to shocks. We expect equities to remain resilient over the next few months, driven by this favorable policy-growth mix, and valuations to remain elevated but not overdone, especially versus other asset classes. Technicals and cautious positioning also favor equities and other risk assets, and we wouldn’t rule out further meaningful upside given the right combination of data and Fed easing. That said, at this late stage of the cycle and given the meaningful downside macro risks present, we stress the tactical nature of our outlook.