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Investment Strategy: Boxing with a Cloud

Posted September 30, 2016 by rvillareal

In Brief:

  • Though long-in-the tooth, the current business expansion is not about to roll over. Decision Economics, Inc. (DE) expects sluggish global growth to pick up some steam and extend into 2017 and beyond.
  • Failure by unorthodox monetary policies to stimulate faster growth, coupled with rising populist sentiment, are pressuring governments to use fiscal policies to pick up the slack. DE projects a modest increase in public spending to help lift growth across the G7 in 2017.
  • In our view, S. equities continue as the asset class of choice, but subject to periodic pullbacks brought on by pressure on corporate profit margins and political uncertainty. Though reducing overall equity market exposure, DE maintains a strategically Strong Overweight position in equities for global portfolios, anticipating stronger global economic growth and a rebound in profits in 2017 .
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