23 Jul The longest US economic expansion ever
Key Points:
- Where the US economy goes is critical to the outlook for shares, including for the Australian share market.
- While the yield curve is flashing warning signs and issues around trade and Iran could cause short-term volatility, the excesses that normally precede US recessions – a spending boom, surging private debt and/or rising inflation/tight monetary policy – are absent.
- This along with the combination of easing monetary conditions globally, is likely to see growth continue suggesting that US – and hence global and Australian – shares are likely to be higher in 6-12 months’ time.
