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DISCLOSURES: The information provided herein is furnished by Miles Capital, Inc. solely for informational purposes and is confidential. It may not be reproduced or distributed to anyone else without prior consent. This document contains the current views of Miles Capital and is not intended to be, and should not be interpreted as, a recommendation of a particular security, product, or investment strategy. Such opinions and predictions are subject to change without notice. The strategies described in the presentation may not be suitable for all investors. There is no assurance that any of the objectives described will be achieved. This information contained herein does not take into account the particular investment objectives or financial circumstances of any specific person or entity who may receive it. You should consult your tax or legal advisor before making an investment, and investors are advised to thoroughly and carefully review financial, legal, and tax consequences of all investments to determine suitability. Investments in alternative assets may be illiquid and present significant risks. Past performance is not a guarantee of future results. There can be no guarantee that any investment strategy discussed in this Presentation will achieve its investment objectives. As with all strategies, there is a risk of loss of all or a portion of the amount invested. Diversification does not ensure a profit or protect against market loss.

U.S. Fundamentals Continue to Remain Generally Strong but Market and FED Looking at Downside Risks



As stated in our previous note, many economic indicators remain strong. However, some recent economic data and trade uncertainties have increased the market projections of a potential Federal Reserve (Fed) rate cut. The Fed announced earlier this year that instead of raising rates two times during 2019, they would pause as they assimilated new economic data.


The Fed is concerned about how potential tariffs may affect the economy. And while measured inflation still remains relatively low, the Fed is closely monitoring since economic growth has been strong. There has also been some mixed data recently, including a fairly weak May non-farm payrolls number (representing employment changes). This payroll number, released June 7, showed an increase of 75,000, but the market had expected 175,000. Unemployment still remains very low at 3.6%.


It is important to note that the expectations for a rate cut are changing daily and we should get more clarity from the Fed when they meet June 19. It is also important to note that using the Federal Funds futures as an indication of what the Fed will do has not always been historically accurate.


At Miles Capital, we still believe that the economy remains relatively strong; however there are clear uncertainties. We will be watching the results of tariff discussions and indications from the Fed meeting June 19. We are also assessing other risks such as worldwide growth deceleration, inflationary pressures, and continued uncertainty around Brexit.

Disclosures
 

The views expressed herein are the current views of Miles Capital as the stated date and are provided for informational purposes only. They are believed to be correct, but accuracy and completeness cannot be guaranteed and should not be relied upon for legal or investment decision purposes. All expressions of opinion and predictions presented are subject to change without notice. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Past performance is not a guarantee of future results. Diversification does not ensure a profit or protect against market loss. As with all strategies, there is a risk of loss or all or a portion of the amount invested.