Despite a rocky fourth quarter in the capital markets, strong employment trends and rising wages make it seem unlikely that a recession is imminent. We believe growth will be solid in 2019, if slightly lower than in 2018. That said, we are watching key indicators for signs that economic fundamentals are deteriorating and believe investors should position for the late stage of the market cycle. For fixed-income investors, that means continuing to balance rates and credit with a barbell approach, which has historically outperformed in a late-cycle environment. Equities investors should continue to look for companies with strong balance sheets, which are less vulnerable to rising rates, and consider downside protection in an environment of lower returns and higher volatility.