Friday, 8 September 2017
The global economy remains on track this year for its highest GDP growth rate since 2011. Reflecting the cyclical improvement in economic growth, many central banks have become more hawkish recently, getting ready to either wind back their easing or start raising interest rates. The US is furthest through the monetary policy normalisation process. While the outlook there has become less certain following a number of lower than expected inflation results, we expect the Fed to continue on with gradual withdrawal of monetary stimulus.
Improving economic growth around the world will generally support equities and challenge bonds. That’s because this growth is more ‘traditional’ in nature, arising from better employment and demand, and thus allowing prices (and potentially profits) to rise. However, it is important not to chase well-developed market rallies, even when immediate risks are not apparent.
Read AMP Capital’s full outlook for the New Zealand and global economies, and across asset classes, in the July edition of Quarterly Strategic Outlook.
The content on this website is for information only. The information is of a general nature and does not constitute financial advice or other professional advice. Before taking any action, you should always seek financial advice or other professional advice relevant to your personal circumstances. While care has been taken to supply information on this website that is accurate, no entity or person gives any warranty of reliability or accuracy, or accepts any responsibility arising in any way including from any error or omission. A disclosure statement is available from your adviser on request and free of charge.
Ready to take the next step or have more questions?
Call 0800 102 100 to arrange a no-obligation consultation with a Spicers adviser... More >
The Advice Process
The advice process includes four stages – discovery, developing your plan, putting the plan into action and reporting/reviewing.... More >
How much do you need?
Use our calculators to identify your retirement and savings goals... More >
Looking for an adviser in your region?
Select your region to find a list of Advisers in your area or give us a call on 0800 102 100 to be connected with your nearest... More >