12 December 2024 In my Strategy 2024 blog entitled "Powell Pivot: What Could Go Wrong or Right?", I suggested global financial markets had entered a cyclical sweet spot. Specifically, the combination of steady (if uneven) global growth, declining inflation, and easing monetary conditions pointed to higher equity market valuations. Indeed, even my bullish S&P 500 [...]
Tag: stocks
Global Government Debt: Balloon Still Expanding
11 June 2024 Government efforts to mitigate the economic consequences of the Global Financial Crisis (GFC) and the Covid pandemic have led to surging government debt. In the United States, for instance, public sector liabilities are approaching levels not seen before in peacetime (Chart above). And, while I will discuss important differences between countries and [...]
Strategy 2024: Searching for a Soft Landing
13 December 2023 Happy Holidays! Another challenging year is coming to a close. Yes, the US (and global) economy defied expectations of recession. True, the S&P 500 has recorded a 20% gain. However, the rally was narrow: only technology outperformed the market. Indeed, of the 8 market sub-sectors, only tech, industrials, and financials posted positive [...]
Strategy 2022: Avoiding Stagflation?
1 December 2021 As investors establish their 2022 market strategy, I summarise my answers to many key questions: Will the current rise in inflation be temporary or are rapidly rising prices here to stay? In the USA, for example, I expect price growth to peak in the first quarter of 2022, and "core" inflation to [...]