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Video: 2019 outlook for growth stocks

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The views expressed in these posts are those of the authors and are current only through the date stated. These views are subject to change at any time based upon market or other conditions, and Eaton Vance disclaims any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions for Eaton Vance are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Eaton Vance fund. The discussion herein is general in nature and is provided for informational purposes only. There is no guarantee as to its accuracy or completeness. Past performance is no guarantee of future results.

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      By Yana S. Barton, CFA, Portfolio Manager, Growth Team, Eaton Vance Management

      Boston - 2018 proved to be anything but quiet, and we think 2019 will be more of the same. There may be increased volatility and there are a lot of questions yet to be answered, particularly related to trade policy and monetary policy.

      That being said, the biggest challenge for long-term investors is to face these short-term anxieties and uncertainties, and capitalize on opportunities that are presented by dislocations in the marketplace.

      (Tap or click the image below to view the video.)

      Blog Image Barton 19 Outlook Jan 11

      Overall, the backdrop for U.S. equities remains favorable. The U.S. economy is healthy with GDP rising at an annual 3.4% pace in the third quarter, according to the Commerce Department. Also, inflation is muted, interest rates are still low, profits rose in 2018 and valuations look attractive to us based on earnings expectations.

      Yet, change is the only constant in the market. We favor an approach that is flexible yet focused.

      Right now, we're finding growth opportunities in various sectors of the market. The first area is secular growers, and many of these companies are in the information technology, consumer and health-care sectors. Another opportunity is in what we call stable growers that have pricing power and financial stability, and many of these companies are in consumer staples and health care. Then the third opportunity is in underappreciated earnings growers that we believe are mispriced, and some of these companies are in the industrials space.