NEW YORK, March 28, 2019 /PRNewswire/ — The global markets panel on the first day of Quinnipiac University’s ninth annual Global Asset Management Education (G.A.M.E.) Forum in New York was characterized by acute awareness of global stability challenges, but agreement that they wouldn’t stop a robust U.S. economy.
Judy Olian, president of the host Quinnipiac University, ticked off a list of potential economic disruptors that included Brexit, trade wars and cybersecurity threats.
“I can’t remember a time in the last 50 years when there were so many global conflicts at one time,” echoed Ralph Acampora, senior managing director at Altaira Capital Partners. He added government shutdowns to the list.
But Douglas Coté, chief market strategist and senior portfolio manager at Voya Investment Management, described the current turbulence as “the storm before the calm” and predicted a continued strong economy. “The fundamentals are solid, and I expect the bull market to continue,” he said, citing “stellar” corporate earnings, low unemployment, a very healthy manufacturing sector and American energy dominance. He was, however, critical of Federal Reserve rate increases, a position at odds with other panelists.
Abby Joseph Cohen, senior investment strategist at Goldman Sachs, said the Trump administration’s federal tax cuts were “poorly implemented” because they didn’t result in a significant rise in corporate capital spending or R&D. A rising deficit remains a problem, she said. Another danger sign is slowing exports, she said, including the Chinese buying soybeans from markets other than the U.S. “The trade wars are not helping,” she said. But she also cited strong fundamentals, including unemployment trending down and wages moving up.
David Kelly, chief global strategist at J.P. Morgan Funds, recognized a modest slowing of U.S. economic growth but said worrisome inflation “is not on the horizon.” He agreed with Cohen that the U.S. tax cuts had not helped the U.S. economy as much as intended, but added that the market outlook is basic positive. A danger sign, he said, is rising income inequality.
In response to a student question, all the panelists agreed on the need for a response to climate change, but Coté disagreed sharply on the carbon tax advocated by Kelly.
The G.A.M.E. conference drew 1,500 participants from 154 colleges, 50 countries and 48 states.
SOURCE Quinnipiac University