As we move into 2018, the ‘end of the cycle’ has become the dominant topic for the investment community. This week we explore drivers and detractors to global growth in the coming year with emphasis on specific regions and asset classes.
• 2017 economies: fared very well although it didn’t feel so brilliant in the UK: Markets – equities went up a long way, bonds didn’t have the bad year that good growth can bring.
• 2018 economies: may be more patchy as the US and China monetary tightening reins things back; US consumers’ spending power probably ebbs somewhat, China investment spending probably declines; Europe and Japan remain strong.
• 2018 markets: do OK but are also more variable; equities and corporate bonds face greater headwinds from the patchier growth, and continued pressure on older business models from techy competitors.
To view Tatton’s full 2018 Outlook please click here.