Global Growth Has Room To Run

July 20, 2017

This article is part of a regular series of thought leadership pieces from some of the more influential ETF strategists in the money management industry. Today’s article features Gary Stringer, president and chief investment officer of Memphis, Tennessee-based Stringer Asset Management.

We believe the global economy is improving and has sufficient room left to continue growing, especially in developed economies, where broad economic fundamentals are improving over the near term and valuations remain attractive.

For example, eurozone business confidence is rising, but is still below the levels reached prior to the global financial crisis of 2007-2008 and before the European Central Bank mistakenly raised interest rates in 2011 (Exhibit 1). 



Also, rising employment and jobs creation in Europe and Japan reflect strong gains (Exhibits 2 and 3). So long as foreign central banks remain accommodative, these economies should continue their upward trend.

We think this global expansion should benefit consumer, health care and industrial companies, especially those located in Europe and Japan.





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