U.S. Stocks Won't Touch 2018 Highs Next Year, Cantor Says
- Credit markets, central-bank tightening to weigh on equities
- Strategist Cecchini still sees S&P 500 rally to end this year
This article is for subscribers only.
Weakness in credit markets means the S&P 500 Index won’t revisit this year’s highs during 2019, Cantor Fitzgerald says.
The behavior of markets in the waning weeks of 2018 is leading to a much more bearish view for next year, Cantor’s Peter Cecchini wrote in a note Thursday, citing tighter monetary-policy conditions as a key reason. The European Central Bank’s announcement that it’s ending quantitative easing adds to his conviction in the call, and “despite the dovishness accompanying the move, we feel that this continues to erode support for risk assets.”