World Economy: US – Lone Survivor (for now)
Market behaviour in 2018 has diverged dramatically from what observers had expected at the end of 2017. Then, talk was of a continued, synchronized global expansion and accelerating growth. If anything, the naysayers (ourselves included) worried about an end to the ongoing expansion of the US economy and several idiosyncratic political flashpoints across the globe.
The current situation is almost the full reverse. The Goldilocks scenario expected at the start of 2018 played out for about one month before a burst of sudden volatility inflicted a sharp correction
on US and world markets. In the six months that followed, the recovery was nowhere near as uniform as earlier. Instead, US equities raced ahead, gaining 11%, whereas MSCI’s index for the rest of the world incurred a further loss.
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