Review & Outlook

Second Quarter 2019

Executive Summary

July 5, 2019

John Augustine, CFA, Chief Investment Officer

Still Searching for a Soft Landing

The second quarter of 2019 featured noticeable movements on geopolitical, trade, economic, central bank, and market fronts. These kept us with a "balanced and diversified" approach to portfolio management.

The headlines were fast-moving and numerous:

  1. Tensions between Iran and the U.S. continue to rise. While this does not have economic impacts at this point, markets do move on the headlines.
  2. Trade wars picked up pace in the quarter, with new headlines with Mexico, India, European Union, and China. As of this writing, though, we are in a cease-fire period.
  3. U.S., and global, economic numbers softened around trade, manufacturing. and business investment. This weakening has been noticeable, especially in Europe, with central banks ready to act if needed in the third quarter.
  4. At their May meeting, the Fed pivoted its thoughts of raising their Fed Funds. Rate to now likely cutting that rate at the July or September meeting
  5. All major markets did see gains in the second quarter, but at a much more measured pace than the first quarter. Domestic stocks and bonds had about the same total returns in the period.

Our stock and bond teams continue to focus on higher quality securities, as we will now be going into what is expected to be a flat earnings season for publicly traded American companies. Our economic team is parsing the reports for signs of the soft landing that we believe will occur, potentially in the third quarter if the trade truce noted above holds.

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Huntington Private Bank® is a team of professionals dedicated to delivering a full range of wealth and financial services. The team is comprised of Private Bankers, who offer premium banking solutions, Wealth and Investments Management professionals, who provide, among other services, trust and estate administration and portfolio management from The Huntington National Bank, and licensed investment representatives of The Huntington Investment Company, who offers securities and investment advisory services. Huntington Private Bank® is a federally registered service mark of Huntington Bancshares Incorporated.

Huntington Investment Company, a registered broker dealer, member FINRA/SIPC, and a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). The Huntington Investment Company is a wholly-owned subsidiary of Huntington Bancshares Incorporated.

Insurance products are offered by Huntington Insurance, a subsidiary of Huntington Bancshares Incorporated and underwritten by third party insurance carriers not affiliate with Huntington Insurance.

Trust and investment management services are provided by The Huntington National Bank, a national bank with fiduciary powers. The Huntington National Bank is a wholly-owned subsidiary of Huntington Bancshares Incorporated.

Investment, Insurance and Trust products are: NOT A DEPOSIT • NOT FDIC INSURED • NOT GUARANTEED BY THE BANK • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • MAY LOSE VALUE


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