Congress has proposed new regulations which would provide generous tax breaks to investors in Qualified Opportunity Funds and investors that directly operate businesses in Qualified Opportunity Zones.

The Federal Reserve’s policy intentions sparked a dramatic first quarter rally in risk assets, municipal bonds continued their strong performance, but relative value has diminished versus other fixed income asset classes. We have a modestly positive view for the remainder of 2019, yet it is a good time to reduce risk where appropriate.

One of the greatest challenges facing investors, and people in general, is to know when it is time. Time to buy a house? Time to follow a lifelong passion, or stay in your comfort zone? Time to retire? Time to get into the market, or time to get out? In the case of the markets, with hindsight we can always identify the perfect time.

As poorly as risk assets performed in the fourth quarter of 2018, the reality that the global economy was showing few signs of falling over the precipice into recession sparked a rally in the first quarter of 2019, as positive sentiment carried risk assets universally higher.

As poorly as risk assets performed in the fourth quarter of 2018, it is obvious why investors were looking to 2019 with a mix of both hope and caution.

Much as the declines during the fourth quarter had been most pronounced in the United States, the rebound in the first quarter was also strongest in domestic stocks, with technology stocks reasserting their dominance in the quarter.

While the tax cuts enacted by the Trump Administration accelerated economic growth and resulted in an unprecedented boost to margins last year, it also led to unsustainable earnings growth this year.