I remain of the view that we are in a period of synchronised global GDP growth. This is bullish for equity earnings and will eventually be bearish for bonds once central banks start further tapering of bond purchases to reflect the synchronised global growth we are witnessing.
The big growth engines of the world, namely China, the Eurozone and US are all seeing positive GDP growth revisions. This is very good news and underpins a bullish positioning in global cyclical equities.
It also underpins my core view that interest rates have bottomed for your lifetime. You will never see cash rates and long bond yields lower than what we see today and the only question in my mind is how fast cash rates and bond yields rise in the years ahead.