Things might look a little gloomy in the world's biggest economy, with slowing earnings growth and a recession fears in the bond market, but stocks are still holding up just fine.
Economists are expecting 2.4 percent GDP growth in the U.S. this year, the highest growth forecast among the Group of Seven countries where uncertainties continue to mount. Fitch Ratings "quite aggressively cut" its 2019 global forecast last week, citing a slowdown in China, Brexit and deceleration in emerging markets in the aftermath of the currency crises. Japan added to the heap of worries when the government downgraded its assessment of the economy for the first time in three years.
Some also argued the U.S. still has more room to run in its record-long expansion. Fundstrat Global Advisors' Thomas Lee said key data including investment spending and employment ratio show the U.S. is in mid-cycle, rather than late cycle.