Equities Likely to Gain Further as Global Risks Recede
A casual observer could be forgiven for thinking that this is a terrible year for shares. Europe has continued to convulse, the U.S. has seen growth slow to less than 2 percent and China’s economy has slowed as have the economies of Brazil and India. Still, the reality is that global shares are up 11 percent this year.
Risks of extreme events have begun to recede for the global economy in recent months. There is a reasonable chance that we are passing through the weakest phase of the global growth slowdown and that global growth may actually pick up a bit over the year ahead.