April 28, 2017
Investment Outlook Q1 2017
- Continued economic momentum reinforced improving earnings following the energy-induced downturn of last year.
- Central banks’ active influence aided growth prospects with exceptional levels of stimulus.
- The U.S. Federal Reserve initiated its third interest rate hike since December 2015, in light of improved economic prospects.
- Elevated corporate debt levels, along with an inclination to finance acquisitions with debt, indicate we are well into the second half of the corporate cycle.
- Risks to global economic expansion are increasing with reduced central bank support.
- Political risk continues to rise as a result of the shrinking middle class.
- The highest quality companies will now, more than ever, be recognized for their superior business models and execution.