Economic Outlook Fall/Winter 2017

 In Financial

Economy Highlights

  • 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.

Equity Highlights

  • 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.