Why the US economic backdrop 'remains rosy'

After a torrid Q4 amid a global sell-off, we see plenty of reasons for sustained optimism for the rest of 2019.

The earnings picture remains a rosy one. The one-off effect of US President Donald Trump's corporation tax cut means we are unlikely to see the magnitude of earnings growth witnessed last year.  Nevertheless, we still expect aggregate double-digit earnings growth across our investable universe in 2019, buoyed by material top-line growth against the backdrop of robust consumer and industrial demand. A less well-documented feature of Trump's pro-growth policies is the deregulation drive. This should accelerate capital spending, which could be one of the big economic stories of the year....