Global Market Summary: Slow But Steady U.S. Economic Growth

Published 05/13/2016, 03:42 AM
Updated 07/09/2023, 06:31 AM
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Economics

Little new to report: slow-but-steady U.S. economic growth, even slower growth in Europe and Japan. China continues to grow at a steady pace and world economic growth continues at a slow but acceptable rate.

Stocks

U.S. stocks are modestly attractive if you pick the industries with growth or prospects for upward revaluation due to expected productivity increases. We favor well-positioned technology leaders, precious metals, oil producers, and grain producers. Overall, the U.S. market may be experiencing a changeable May and June with a rally in July and August -- overall a quiet and relatively uneventful environment.

Europe is still burdened with the problems of finding work and shelter for a massive wave of migrants. Many in Europe are afraid to stand up to Russia, so the threat of further Russian incursions into their neighbors’ territories remains.

For a variety of reasons, Asia is not our favorite area.

The U.S. is OK if you stick to the areas with growth and technological advantages, or if you stick with commodity companies in the oil, gold, and grain areas. Buy the dips.

In emerging markets, for the bold, Brazilian currency and Brazilian bonds. They are beneficiaries of an impeachment and government clean up in Brazil. For the very bold, the Russian Ruble. The Ruble is the beneficiary of higher oil and grain prices.

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