Given that the US market has spent much of the last five years advancing north, the big question is, has it gotten ahead of itself and are we due for a significant correction, or are we on the cusp of a new wave of global economic growth?
The bull market of 2003-2008 was imbued with a real sense of optimism, and the belief that the global economy was supported by an exponentially growing Chinese economy. However, the last five years have been a lot more tentative and hesitant and there is still an unmistakable cynicism in the air, a feeling that the growth in US financial markets since 2009 has been overdone, and based primarily on the extended period of quantitative easing. It has all felt a little desperate and artificial… or is that just post-GFC cynicism?
It does seem like the US markets are at a crossroads. Is the recent positive economic data that has been coming out of the US a sign that things are finally turning around, or is this all a mirage and we have many more years of a stagnant, sideways market to come?
Where is the global economy headed?
Very interested in the views of others.
Be the first to comment