JFL

April 28, 2017

Investment Outlook Q1 2017

Economic Review

  • Continued economic momentum reinforced improving earnings following the energy-induced downturn of last year.
  • Central banks’ active influence aided growth prospects with exceptional levels of stimulus.
  • The U.S. Federal Reserve initiated its third interest rate hike since December 2015, in light of improved economic prospects.

Investment Outlook

  • Elevated corporate debt levels, along with an inclination to finance acquisitions with debt, indicate we are well into the second half of the corporate cycle.
  • Risks to global economic expansion are increasing with reduced central bank support.
  • Political risk continues to rise as a result of the shrinking middle class.
  • The highest quality companies will now, more than ever, be recognized for their superior business models and execution.

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