Adviser Investments’ Chief Investment Officer Jim Lowell has the market analysis for Tuesday, December 4. All major U.S. stock indexes dropped more than 3% on Brexit’s Parliamentary defeat and ongoing trade-war concerns: The Dow Jones Industrial Average, S&P 500 and NASDAQ fell 3.1%, 3.2% and 3.8%, respectively. Meanwhile, bond prices rose sharply, with the yield on the 3-year Treasury topping that of the 5-year Treasury by 1.4 basis points, or 0.014%. Despite this yield-curve inversion, Jim emphasized that economic fundamentals—including earnings growth, low interest rates and a well-employed workforce—continue to indicate slow growth, not no growth.
