Fundamental backdrop remains solid

Here's what we're thinking

October 10, 2017

Global markets have remained in a buoyant mood in recent weeks thanks to a steady stream of positive economic data and supportive monetary/fiscal policy developments. We have always maintained an optimistic outlook with respect to the ability of this current business cycle to continue generating healthy, albeit historically modest, growth. Recent data, however, has been beating expectations consistently with global growth climbing to 6-year highs and (even more impressively) broadening out to all major regions and economies. Falling unemployment rates, expanding business spending on capital expenditures and new highs in manufacturing activity are helping to provide an added boost to this current expansion phase which is in its 9th year.