By Joe Amato, President and Chief Investment Officer - Equities
Stronger GDP growth is the key to sustaining U.S. equity momentum.
As we enter December, the market continues to chew over the implications of a Donald Trump presidency. Last week, my colleague Erik Knutzen, CIO of Multi-Asset Class, examined the outlook for emerging markets debt and equities. This week, we take a look at the prospects for U.S. equities.
There's been a lot of noise and excitement about the so-called "Trump Bounce" in equities, but I want to dig a little deeper and look at some of the factors that are likely to sustain it. The most important element in equities' continued recovery is a pickup in expectations for stronger GDP growth. Indeed, this may already be in the works.
The most recent figures, for example, show an upwards revision in Q3 GDP - up from 2.4% to 2.9%1… Read More …