The new year is currently expecting more of the same, with a continuation of the US exceptionalism, strong dollar, a concentrated market on a few tech stocks, biased towards growth, and no vital signs from Emerging Markets or Europe, at least not meaningful ones. It is not about valuations, since the U.S. is expensive in absolute and relative terms to almost every market, but rather the lame growth expected in major markets and the inability to allocate a significant part of investors portfolios in the ones that will be growing above trend. In the chart below we can see the divergence in GDP between U.S. and Europe, and China will grow at a much slower pace than the last decade’s average until the government finds a way to deal with their Real Estate problem and the impact of tariffs is clear. What all these really means is that risks continue to build up, until markets implode on their own weight.
Want to know more? join Fund@mental here https://www.myfundamental.net
#iamfundamental #soyfundamental #wealthmanagement #familyoffice #financialadvisor #financialplanning
Yorumlar