Macro Update - June 4, 2019

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Includes: BBSA, BIBL, BIL, CHGX, CLTL, CRF, DDM, DFVL, DFVS, DIA, DLBL-OLD, DLBS, DMRL, DOG, DTUL, DTUS, DTYL, DTYS, DUSA, DXD, EDOW, EDV, EEH, EGF, EPS, EQL, ESGL, FEX, FIBR, FWDD, GBIL, GOVT, GSEW, GSY, HUSV, HYDD, IEF, IEI, ITE, IVV, IWL, IWM, JHML, JKD, OMFS, OPER, OTPIX, PLW, PMOM, PPLC, PSQ, PST, QID, QLD, QQEW, QQQ, QQQE, QQXT, RISE, RSP, RVRS, RWM, RYARX, RYRSX, SCAP, SCHO, SCHR, SCHX, SDOW, SDS, SFLA, SFY, SH, SHV, SHY, SMLL, SPDN, SPLX, SPSM, SPTL, SPTS, SPUU, SPXE, SPXL, SPXN, SPXS, SPXT, SPXU, SPXV, SPY, SQQQ, SRTY, SSO, SYE, TAPR, TBF, TBT, TBX, TLH, TLT, TMF, TMV, TNA, TQQQ, TTT, TUZ, TWM, TYBS, TYD, TYNS, TYO, TZA, UBT, UDOW, UDPIX, UPRO, URTY, USA, USMC, UST, USTB, UWM, VFINX, VGIT, VGLT, VGSH, VOO, VTWO, VUSTX, VV, ZF, ZROZ
by: Robert W. Baird & Co.
Summary

Interest rate cut expectations have soared over the past month, and Treasury yields have moved to their lowest levels since 2017.

Inflation continues to drift higher.

Absent a significant drop in business confidence, moderating economic activity is likely to represent cyclical slowing rather than a precursor to recession.