The current backdrop calls to mind the equity bull market of the 1990s, writes Trevor Greetham, director of asset allocation at Fidelity Worldwide Investment.
An equity-friendly disinflationary recovery is underway, according to the Investment Clock model that guides our asset allocation. Global growth lead indicators remain strong but inflation pressures are easing, with our inflation scorecard pointing downwards in 22 of the past 24 months. This backdrop calls to mind the equity bull market of the 1990s. A lack of inflationary pressure is allowing the big central banks to maintain an easy policy stance that should support a sustained economic upswing and strong equity returns. The Federal Reserve is tapering quantitative easing (QE) but inte...
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