Four charts outline key observations and things investors should watch out for in the US, Europe, Japan and China.
The saying ‘sell in May and go away’ refuses itself to go away.
The US is shedding excess capacity at a faster rate than most of its developed world peers, which supports our outlook for inflation to strengthen and sharpens our focus on the risk of rates volatility.
Time-series and cross-sectional analysis support our expectation for US wage growth to pick up in the near future.
We believe the balance of secular drivers over the next several years is inflationary, as a range of factors that have suppressed prices over the past decade are reaching inflection points.
The weak transmission of growth to inflation in the developed world creates challenges for policymakers, raising the risks of a policy misstep.
As expected the Bank of England (BoE) announced a 25bps rate hike, the first for a decade, and voted unanimously to maintain the stock of purchased assets at current level.
Emerging markets are home to 86% of the world’s millennials. Consumer behavior and consumption patterns in emerging markets are changing and new industries and opportunities are emerging, driven by wealth creation and the impact of the millennial consumer.
EM is no longer the commodity proxy it once was—with the increasing dominance of consumer and technology companies in EM, the rising EM consumer’s income growth and spending are becoming the long-term drivers.
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