From the end of the financial crisis until the beginning of this year, the US economy sat at the front of the global growth peloton. Team America were the first, most aggressive and most coordinated in adopting performance enhancing fiscal, regulatory and monetary stimulus and this led to an outperformance of its currency and equity markets. This year, however, global peers have threatened a break-away; performance across European and Emerging economies has improved and US numbers have disappointed given Trump’s inability to consummate reform and gradual FED tightening.
However, there has been jostling for position over the past few weeks:
For now, the net result is a continued push higher; the MSCI All Country World equity index hit an all-time high and the VIX volatility index hit an all-time low last week.
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