Happy New Year to all of you. I believe it can be another positive year for investors, albeit you MUST position yourself for rising global interest rates.
I’m typing this note from the USA, and I can tell you by my observation that this economy is really humming. Waiters expect 25% tips, retail sales are strong, and Wall St is reflecting all of this. What must come next is inflation and a series of interest rate rises from the Federal Reserve. Bond investors will also demand higher yields to compensate for inflation, while the US tax cuts mean Washington needs to issue more bonds to fund higher deficits. All in all, I have to say it does feel buoyant over here, which is good for global equity investors.
Off with a bang