The IMF forecasts that the changes in the global economy will not spare the US market in 2019 as it did this year. While growth in the global economy has been showing signs of slowing down, the US has been immune to much of the malaise.
Despite slowing growth in Europe and Asia and the US raising rates 75 basis points this year (and still expecting another increase to round out to a full 1% increase for 2018), the markets have performed relatively well, until October. With the headwinds of the tax cuts dying down and markets are starting to look at 2019 projections and the likelihood that the US can go against the global trends another year.
The cancellation of the Brexit vote today shows ow sensitive the markets are to data at this juncture. On edge markets are keeping volatility high, probably into the next year. The Fed meeting coming up on the 19th of this month will be exceptionally important. Markets will be hanging onto the language that comes out of the meeting to see how the FOMC will respond to this mix of data, and adjust their 2019 outlooks accordingly.