Q4 2018 Look Ahead

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With the first full week of trading for Q4 2018 underway, we’d like to take this opportunity to present you with our Q4 2018 Look Ahead.

For a PDF presentation, click here.

For a narrated video presentation, click here.

Below we’ve highlighted three key themes from our Q4 2018 Look Ahead:

The year is projected to finish with strong earnings growth: Keep in mind that growth expectations for 2019 estimate half as much growth as 2018, but cash on the sidelines in Technology may help to push earnings growth higher than expectations.

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Political outcomes: The House and Senate are leaning toward split control; however, average annual stock market returns remain positive dating back to 1929.

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Leverage is taking over:
Net debt to EBITDA ratios around the globe are eclipsing peak levels; at the same time, the lending environment is likely fueling growth by loosening covenants and lending standards.


Net debt to EBITDA.JPG

 

While there may be clouds beginning to form throughout credit markets, valuations and earnings growth remain supportive of equity markets.  It’s important for investors to look beyond the political noise and focus on the main drivers of growth going forward.

For more insights into what we believe lies ahead and how we’re positioning for these events, please check out our Q4 2018 Look Ahead, and listen to our narrated video presentation here.

If you have questions or comments, please let us know.  You can contact us via Twitter and Facebook, or you can e-mail Tim directly.  For additional information, please visit our website.

Tim Phillips, CEO, Phillips & Company 

Robert Dinelli, Investment Analyst, Phillips & Company 

 

References:

         i.            http://phillipsandco.com/files/6615/3876/8981/Look_Ahead_2018Q4_-_Final.pdf