The equity markets’ disconnect with the current economic environment is truly amazing to see. We have never seen more of a disconnect between data and the market. The trade dispute will probably get much worse, China economy will continue to struggle, and the EU is further burying themselves in debt. The trade war with China has caused significant corrections in all major indices already yet the markets have not priced in correctly. Absolutely nothing gets resolved whenever China and the US meets but market rallies every time another meeting is scheduled. The potential lower rates will increase debt, inequality, and unable to cure the underlying problem. The economic indicators and recent trends indicate that there is a high probability of an earnings recession and in our view, earnings recession will likely be a major catalyst for a significant decline in equity prices next year.