Equity markets sold off over the past two days. While the cumulative decline is a mere 1.2%, the sharpness of the reversal is notable and the abrupt change in character from much of November stand out. Moreover, the selling intensified Monday with the downside reading of US ISM Manufacturing (48.1 vs 49.2 expected).
In our view, we would be buyers of this pullback. Our base case remains that 2020 economy > 2019 economy, setting the stage for a “revival of animal spirits” (investor perception) and thus, setting the stage for a move towards 3,185 before year-end.