There are very few straight lines in financial markets - revenues wobble, earnings fluctuate and market valuations oscillate. The reality is that in a world of almost 200 nations the political and business cycles are not perfectly harmonised. There always have been and always will be leaders and laggards. This has been cleared evidenced by the difficulties encountered by a handful of Emerging Market countries in recent months. In many ways the 2012 to 2015 economic and market backdrop may be recalled as possessing Goldilocks characteristics. Global growth is strengthening. Corporate earnings are advancing. The cost of debt financing is meagre by historical standards and low inflation means the major Central Banks are on hold for an extended period. This presentation discusses the economic and market outlook for the rest of 2014 and 2015, looks at key portfolio issues and what you should be considering with client portfolios in coming years.
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