Global Economy Still In A Funk

Check out the accompanying pdf and chart collection. Executive Summary: Recent global indicators show economic growth at a crawl, commodity prices remaining weak, and inflation moderating. Weighing on the pace of growth have been recessions in China and Europe. China’s economic malaise is secular in nature and likely to last for a while given the challenges facing that country. But we expect the ECB to ease in the spring as inflation moderates, and the Eurozone’s shallow recession to lift. US economic growth has been slowing from Q3’s rapid pace, but a comeback in productivity growth could recharge it. … We continue to advise overweighting US stocks in global equity portfolios.