By Dr. Sonu Varghese via Iris.xyz
In our previous post we posed five questions for the US economy – with the Federal Reserve committed to rate hikes and a new tax bill that significantly restructures the US tax code, especially on the corporate side, there certainly is a lot going on within the US.
At the same time, economies around the world, particularly in developed markets, are seeing a simultaneous upswing. This was reflected across global equity markets in 2017 – the MSCI EAFE index (net, USD) gained 25.6% while the MSCI Emerging Markets index (net, USD) climbed 37.8%, both beating the S&P 500’s 21.8% return. As in the US, returns were powered by the Technology sector amid rising global demand. Even the manufacturing sector in developed markets appears to be booming. The obvious question then is whether this will continue, and that is where we begin.
Will global growth continue to steam ahead?
The global economy, especially in developed countries, has been on a remarkable upswing over the past year. Markit’s global manufacturing PMI ended 2017 at a near seven-year high of 54.5. Global manufacturing strengthened across several sub-indicators, including output growth, new orders and employment, providing an upbeat outlook for 2018.
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