Investors can see blue skies just about anywhere they look heading into 2018, as the synchronized global economic recovery gathers a head of steam.
Most major economies are experiencing early- to mid-cycle characteristics
Most of the world's equity market indices achieved or neared multiyear highs in 2017, as investors set aside concerns about politics and focused on the broadening expansion. Market levels suggest that better investment opportunities may continue in non-U.S. markets.
Percentages of total world market capitalization and global GDP
After more than 100 months of expansion, the U.S. economy appears to be in a period of self-sustaining equilibrium. The jobs market is solid, consumer confidence is soaring and retail sales growth is picking up.
The American economy is drawing from numerous sources of strength
The rally in emerging markets equities is more than 20 months old, with stocks up 76% since a trough in early 2016. Is the rebound getting long in the tooth? An expanding global economy, strengthening currencies and robust demand for technology-related components all bode well for emerging markets.
Until recently, emerging markets equities had trailed developed markets for several years
Emerging Markets vs. Developed Markets: Rolling 3-Year Returns
Read our 2018 Outlook to learn more about the challenges and opportunities ahead for investors in the global economy.