Outside of the United States, we think growth will be uneven but improving. The political environment in Europe is not supportive of growth, but we think this region will see some economic acceleration. Our outlook for China is mixed. Growth is slowing in the world’s second-largest economy, as Chinese authorities enact reforms to make the economy less dependent on investment and more driven by domestic spending.
The U.S. and global economies were already improving before November’s elections, and appear set to continue accelerating. Corporate earnings are also experiencing some tailwinds. The global political backdrop could create risks given rising populism around the world, but for now we think it makes sense to stick with a pro-growth investment stance.
Bob Doll is chief equity strategist at Nuveen Asset Management.
1 Source: Morningstar Direct, as of 1/13/17