Inside Markets — Performance Chase

There is never a shortage of identifiable risks for equity markets with the obvious near-term risk being a ‘nothing done’ on a US-China trade deal. .  A Trump-Xi meeting than ends without an agreement would likely lead to a volatility spike and sell-off in risk assets globally.  Further out, we see the potential for a US cyclical acceleration as a misunderstood risk for retail investors.  A US economic recovery/acceleration that causes a rotation into cyclical equity groups would likely come at the expense of crowded secular growth themes where retail investors are more overweight than they currently appreciate.