Demand for economic growth from both politicians and the electorate is growing, leading to increasing talk and some planning for major infrastructure projects. The move here is to focus more on the companies likely to benefit than a macro story that lifts the entire area.
Mining stocks have moved to a momentum-driven phase, a change that suggests it’s time to close positions and book profits. In the meantime, oil prices and global growth are two critical factors when considering new investments.
Investors combing Europe for opportunities should focus on high-quality names. Adventurous readers may want to consider Spanish equities; the market trades at a discount to its European peers and could offer significant upside potential if sentiment toward Latin America continues to improve.
Leaving the EU won’t do Britain’s already-weak economy any favors, while the move could also jeopardize the UK’s own union. We examine the political and economic climate in Europe and its implications for investors.
Asian equities have rallied in recent months, but many markets still trade at favorable valuations. Patient investors should focus on high-quality names in the financial and information technology sectors.
Our current outlook calls for China’s economy to grow between 6.5 and 7 percent this year. We remain concerned about how domestic demand and the service sector will cope with deflationary pressures, but the Mainland economy appears to have stabilized. Investors should remain cautious in the near term.
We explore the recent devaluation of the renminbi, analyze market’s misreading of this development and explain why we remain cautious on Chinese equities in the near term but like the financial sector over the long haul.
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