2017 Global Market Outlook — Q2 Update

Q2 Update

Our global team of investment strategists warn that investor expectations have run ahead of market fundamentals in the global equity markets. They maintain a call for caution as inflated expectations for global growth and U.S. fiscal policy drive markets higher, despite looming global economic headwinds.

In the medium-term, they are not bearish; the U.S. economy shows relatively low recession risk and Europe can maintain above-trend growth, while emerging markets are showing resilience to U.S. dollar (USD) strength and U.S. Federal Reserve (the Fed) tightening.

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Key forecast highlights that our strategists expect to unfold in the months ahead include:

  • Emerging markets (EM) exports continue to strengthen
  • Equity markets look deeply overbought with the U.S. most vulnerable
  • Political risk will likely be much lower than feared for Europe
  • One more U.S. federal funds rate hike forecast for 2017
  • Expectations of low returns and high volatility in the Asia-Pacific region
  • Lowered potential recession risks in the U.S. economy

 

Russell Investments releases its Global Market Outlook on a quarterly basis. The Outlook highlights the most recent economic insights and market expectations from the firm's global team of investment strategists. It is the most widely read of Russell Investments' publications.

Contributing authors

Paul Eitelman
INVESTMENT STRATEGIST, 
NORTH AMERICA

Graham Harman
SENIOR INVESTMENT STRATEGIST, ASIA-PACIFIC

Shailesh Kshatriya, CFA
DIRECTOR, CANADIAN STRATEGIES
Van Luu, Ph.D.
HEAD OF CURRENCY & FIXED INCOME STRATEGY

Kara Ng
SENIOR QUANTITATIVE INVESTMENT STRATEGY ANALYST

Andrew Pease
GLOBAL HEAD OF INVESTMENT STRATEGY

Abraham Robison
QUANTITATIVE INVESTMENT STRATEGIST
Wouter Sturkenboom, CFA, CAIA
SENIOR INVESTMENT STRATEGIST, EMEA

Alexander Cousley
INVESTMENT STRATEGY ANALYST

Stephen Wood, Ph.D.
CHIEF MARKET STRATEGIST
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