The global economy is still on the mend, but it’s still a two steps forward, one step back affair. Of the major regions the US is doing the best, but Europe is lagging. This means occasional bouts of uncertainty, but it’s not such a bad thing if it keeps central banks supportive.
The main implications are: we are still in the sweet spot of the global economic cycle, which is good for growth assets; the lack of global synchronisation means that fundamentals for individual regions, assets and stocks matter; constrained global growth will mean constrained returns; and the big event to watch for is when the Fed starts to hike rates – but it still looks a way off at present.
Please click here to read the full article: The-global-economic-outlook-implications-for-investors – Edition 28 – 27 August 2014