In the face of increasing uncertainty and economic weakness we can always count on one of the big banks to find the bullish case (via Business Insider):
“We are positive on equities as:
1) economic lead indicators, although beginning to soften, are consistent with reasonable GDP growth forecasts;
2) dovish central banks and synchronized QE are the end game;
3) rising global excess liquidity is consistent with a c10% re-rating;
4) valuations relative to bonds are still attractive;
5) equities remain the hedge if, as we expect, long-term inflation expectations rise;
6) positioning is still cautious.”
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.