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As always, the number one "bogey" we are trying to avoid is recession. Absent a material worsening of the coronavirus outbreak, we don't see recession as our base case for 2020. Portfolios are positioned accordingly.

As expected, Manufacturing has indeed rebounded and confirmed strengthening economic readings elsewhere. But coronavirus concerns keep me from adding back equity. This may change early next week.

This likely will remain the case until a material slowdown in the transmission rate occurs. Nevertheless, while the ultimate market and economic impact is unknown, past precedent suggests it will be fleeting. Interesting links included.

Whatever the answer, corrections are normal and healthy in ongoing bull markets. No overt defensive measures are anticipated, although a concessionary delay in putting past defensive proceeds back to work is being considered.

All considered, the decision to add back some equity to client portfolios is looking ever more imminent.

Also, Chinese Vice Premier Liu He will be in Washington next week to officially sign the Phase 1 Trade Agreement recently reached between the U.S. and China.

That said, RBC is fortunate to have Helima Croft as our Global Head of Commodity Strategy - her insights on the Middle East are peerless.

This week I received a handful of client queries about the potential impact of impeachment on markets. When a few ask, it's inevitable that many more are wondering. Set your minds at ease, absent a bombshell development, it's sure to have no impact.

Yes, there were important trade developments and UK election results; but, moving forward, how the Fed targets inflation may be a game changer