hit all-time highs. The Dow crossed and closed above 28,000 for the first time ever. The S&P 500 is now at 3,120, up 24.5% so far this year.
"If we were to get some kind of nasty trade headline or maybe a poor PMI [Purchasing Managers' Index] print it could be a move for a little bit of a catalyst lower," said Mills. "Nothing dramatic but maybe in the 5% range."Mills believes the setback will likely happen before the end of this month, and he acknowledges it could feel scary for investors. But he wouldn't be discouraged.
"I think we're buying there. You know, we don't think a recession is the base case for 2020," he added. "When that's the backdrop, we're going toMills is bullish on 2020, and he expects a re-acceleration of economic growth and a U.S.-China trade war resolution to ultimately to push cyclicals higher. His top idea is to go abroad, a widely under-deployed play right now.
"You're going to see a more obvious bottoming in the global manufacturing cycle. I think finally you start to see lower interest rates act as a tailwind," Mills said. "When that's the case I like value. I like more pro-cyclical. And, when I like that, I like international."