Executives at T. Rowe Price & Associates expect the current choppiness in financial markets to continue into 2019.

Alan Levenson, the firm’s chief economist, sees GDP growth in the U.S. slowing to 2.25 percent in 2019. Despite that, he thinks it is quite possible that the Federal Reserve will keep raising the Fed funds rate by 175 basis points over the next few years, taking it to the 3.8 percent area.

Although many observers are questioning whether the U.S. economy is strong enough to handle seven more rate hikes, Levenson said their perspective is conditioned by the near-zero interest rate environment of the past decade.

Meanwhile, the gap between growth and value stocks is likely to emerge as a major theme over the next year, according to John Linehan, chief investment officer of equity at the Baltimore-based firm.

Linehan identified several challenges facing the aging bull market. Concerns about the Federal Reserve raising rates and the trade war with China continuing into 2019 have contributed to a downturn in stocks since September. Over the last three months, the companies with the most revenue exposure to China have underperformed by 30 percent.

The current bull market is the second strongest in U.S. history, Linehan said. What may make it unique is that it has been accompanied by the most tepid economic recovery of the post-World War II era. Part of the reason for this divergence is that companies have become increasingly skilled at managing margins at the same time that they are very worried about disruption.

The outperformance gap between growth and value stocks over the last decade has only been seen “twice in our history,” Linehan noted, admitting that it was a frustrating time to be a value investor. This suggests the markets “have gone too far” and could be “setting up a backdrop for value to begin working.”

In six of the last seven national elections, a volatile electorate has caused at least one branch of government to change hands. But Linehan said the third year of a presidential cycle typically is the best year and that’s one reason why the near-term balance favors the bulls.

Linehan added that he didn’t believe a recession was likely “but we understand why there are concerns.” Confidence in the economy among both consumers and business owners remains very high.