NEW YORK—At several points during 2019 many market participantsbelieved the grind higher was going to come to a halt. However,this did not occur, even after a tumultuous 4Q18 where many expertswere calling for a downturn. Although America's financial systemhas been buffeted by a slowing global economy and the U.S.instigated trade war with China, it has been buoyed by the lowestunemployment levels during the past 50 years, and rising incomeswhich have fueled consumer spending and a generally optimisticsentiment.

Although the U.S. economy is on solid footing, the longestperiod of expansion in its history places the nation in unchartedterritory. The recent signing of a Phase One U.S./China tradeagreement, which represents a formal truce, and the pendingCanadian ratification of the United States Mexico Canada Agreement(USMCA) are positives. All of this coupled with sanguine Americanconsumers and a continued low interest rate environment shouldresult in on-going moderate U.S. economic growth during 2020.