Epoch manager is unfazed by U.S. market volatility

David Pearl expects earnings growth to drive stocks higher this year.

Sonita Horvitch 18 April, 2018 | 5:00PM

David Pearl, executive vice-president and co-chief investment officer at New York-based Epoch Investment Partners, Inc., says that while the United States' trade confrontation with China is unsettling the U.S. equity market, the fundamentals of the U.S. economy are the best that they have been in many decades.

"The tax cuts are accelerating U.S. economic growth, business confidence is rising, the labour market is strong and corporate profits are expected to rise significantly in 2018," says Pearl.

The government continues to be pro-business, he says. "In addition to its tax package, it is looking to reduce regulation in key areas of the economy such as energy." The tariff spat between the United States and China is a "wild card and has been causing a scare," he says. "So far, the consensus in financial circles is that this confrontation is unlikely to develop into a full-fledged trade war between the two countries."

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Alphabet Inc Class C1,410.42 USD0.54
Apple Inc318.89 USD0.64
Bank of America Corporation22.66 USD-1.05
Boeing Co137.53 USD-1.06
F5 Networks Inc137.31 USD0.12
Microsoft Corp183.51 USD0.04

About Author

Sonita Horvitch

Sonita Horvitch