Economic Outlook Fall/Winter 2017
- Economic growth in the U.S. accelerated during the most recent quarter.
- The current economic expansion is now the third longest in U.S. history.
- Increased trade and higher commodity prices have contributed to a rebound in global growth.
- Emerging economies are projected to grow at twice the rate of developed economies.
- Global stocks finished the quarter at higher levels despite escalating geopolitical risks.
- U.S. small cap stocks rallied at the end of the quarter on prospect of tax reform.
- Emerging market stocks were the top performing segment aided by a weaker U.S. dollar.
- Central bank monetary stimulus slowly being removed from markets.
Fixed Income Highlights
- Federal Reserve to begin reducing the size of its balance sheet in October.
- Fed’s approach to unwinding the balance sheet will be slow and methodical.
- Credit sensitive issues outperformed treasuries marginally during the quarter.
- Unclear if the FOMC will increase short-term rates at its meeting in December.