Gries Financial Market Update Our current thinking around the economy, global markets and investment strategy. Hosted by Ken Brodkowitz, Gries Financial Chief Investment Officer and the Gries Financial Investment Team

Despite Solid Data, Recession Risks Are Rising Source: Cornerstone Macro Research

U.S. Equities Are Slightly Expensive Relative To History, But Still More Attractive Than Bonds

The Economic Expansion Is Continuing At A Steady Pace

Unemployment Continues To Fall Which Should Drive Up Wages

Inflation Should Gradually Rise

The Federal Reserve Is Expected To Steadily Raise Rates

Strong Earnings Growth In 2018, But Future Growth May Be Muted

Factors: Performance & Valuation

The Global Economy Is Experiencing Synchronized Growth

International Equites May Offer Better Long-Term Opportunities

Rising Rates Makes Fixed Income Investing More Difficult

The Importance Of Staying Invested and Limiting Loses

The Proper Use Of Alternatives In Well Diversified Portfolios Should Help Mitigate Volatility

The Glass Is Half Full Today But There Are Headwinds To Monitor Tailwinds Corporate tax reform leading to strong corporate profits Rising government spending. For example, public construction spending on infrastructure is up 10% y/y Personal tax cuts are helping to boost consumer spending Easy lending standards for residential mortgages and commercial loans. Housing starts are picking up and capex for smaller for smaller companies is benefitting from loan approvals Headwinds Federal Reserve tightening should eventually slow the economy Trade war tensions have been heating up. In general, higher tariffs are bad policy The recent rise in the U.S. Dollar remains a one of the largest financial markets risks via its negative impact on emerging markets. Corporate debt spreads have increased some, but they still remain historically low. Rising spreads usually signal increasing stress within the financial system