As we cross the halfway point of 2018, the U.S. economy continues to exhibit unrelenting strength while also showing classic late cycle characteristics.

As Congress prepares for its August recess and looks ahead to midterm elections, a great nervousness prevails over both Republicans and Democrats on the outcome of the election.

As investors, we are bombarded with information to digest, evaluate, and synthesize into coherent and actionable conclusions.

The U.S. economy remains strong, and there is evidence that the full benefit of last year’s corporate tax cut has not yet been felt. Indications are for continued economic growth in the back half of the year, but a strong U.S. dollar could be a headwind for certain parts of the economy.

One of the most challenging aspects of evaluating opportunities at this point in the market cycle is the tendency of the market to be rather binary in its assessments.

As the first quarter closed, equity and bond markets were searching for direction following the losses posted in the back half of the quarter after an exemplary January.

As market strategists and pundits attempt to predict the end of this economic cycle, a commonly mentioned indicator is the term spread of U.S. Treasuries – or the difference between short-term yields and long-term yields.