Global Equities Over-reliant on US Economy for Growth

Global markets have been boosted by US economic growth, and US tech stocks. But will this be enough to support returns?

Peter Gee 23 August, 2018 | 10:03AM
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New York USE global markets over dependent on US economy and tech stocks

While the long post-global financial crisis global expansion is still intact and is providing fundamental economic support for risk assets, it is increasingly being challenged by downside risks, with trade wars and emerging-markets economies the latest worries.

Risk asset classes have also become overdependent on the U.S. economy. All going well, the global and U.S. economies will continue growing through 2019, but the recent pattern of volatility looks set to become an established feature of what are now “late in the cycle” markets.

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Peter Gee  is a Fund Analyst for Morningstar Australia

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