Markets & Economy

2018 Outlook: Global Markets

We expect economic and monetary conditions to be supportive in 2018. However, financial assets are fully valued in most regions.

Key Points

  • Developed and emerging economies are being lifted in the first synchronized global expansion since the financial crisis. We expect growth to extend into 2018.
  • Disruptive innovation is transforming business. We expect this trend to continue to benefit a relatively small group of mega-cap technology firms.
  • Bond markets expect monetary policy to turn more restrictive in 2018. Low yields and narrow credit spreads provide a thin buffer against potential volatility.
  • Financial assets appear fully valued in most regions and sectors. We believe skilled security selection will be the key to good performance in 2018.

Next Steps: