Productivity growth to slow economy

The backdrop for the US equity market remains favourable. Inflation appears to be under control and the Fed looks to be on hold. Corporate profit growth is strong and the overall health of the economy is good. Valuations, despite much discussion to the contrary, are reasonable for the majority of the market. Our main concern in the macro environment is the possibility productivity growth slows with the economy, while wage growth strengthens. The Fed would be forced to hike rates, possibly forcing the economy into recession. While we do not think this is probable, there is a reasonable ...