2019 proved to be an exceptional year for investors, as all major asset classes posted positive returns, led by strong equity markets on the back of continued economic growth and easy money.

After four years of discord in Washington D.C., the 2020 elections are at hand – and could bring changes for the economy and policy.

U.S. equities didn’t waiver as fears of a weakening consumer were cast aside, the Fed remained firm on their monetary policy stance and investors may want to look to Europe for opportunity, this and more in this month’s CIO note.

With the Fed concluding their "mid-cycle adjustment" and the U.S. economy showing signs of new life, risk markets are poised to perform well through the remainder of 2019.

As of the end of the September quarter, the S&P 500 price index was up almost 19% year-to-date. While impressive, it is the result of calendar timing following the substantial decline last December. The trailing twelve-month price return is 2%. The sideways move in the market is consistent with the sideways move in earnings per share (EPS) since the June quarter 2018.

The record U.S. expansion continued its advance in the just-completed quarter, although economic growth does appear to be weakening more than what was expected just a few months ago. A key risk to the outlook in our view, is that the slump we are seeing in the manufacturing sector spills over to the consumer.

As the list of investor concerns seems to grow longer by the week. From tensions in the Middle East to the unstable UK Brexit agreement, while adding an impeachment inquiry to the list. Economic growth is slowing both in the U.S. and abroad, but the market has generally been adept at shrugging off macro concerns.

The quarter was a challenging one to navigate for equity investors, as choppiness in the IPO market, concerns around tariffs, and impeachment chatter weighed on sentiment.