The QE approach: take two of these twice a day, forever

Improvements in business confidence and lead indicators, combined with commodity price weakness, suggest we are in the equity-friendly recovery phase of the cycle. Historically, this phase has been the best time to hold stocks, with stronger global growth boosting corporate earnings and monetary policy remaining loose. We are hopeful this current upswing will last a while, although we expect the pace of expansion to moderate at some point. The previous upswings since the financial crisis have been unusually short. Private sector deleveraging, fiscal tightening and the stop-go applicat...