Macro Outlook: Catalysts, Confidence & Cuts
Macro Outlook:
Catalysts, Confidence & Cuts
- US growth remains robust, powered by core demand from consumers and a strong labor market.
- Both the equity market and the economy are up, with markets reaching new highs.
- The Fed has finished hiking rates, and revised its GDP growth projection up to 2.1% at the March meeting.
- All this has created a positive backdrop for corporate earnings.
- International growth has been out of sync with the US, with China struggling and Europe in the middle.
- Germany is no longer the European growth engine, but the most recent eurozone data has come in stronger than expected.
- In the US, slightly higher inflation readings in January and February this year may be seasonal effects. Inflation didn’t rise in a straight line and may not fall in a straight line either.
- Concerns about the Magnificent 7 stocks and a market bubble may be overblown.
- There may be some opportunities ahead in small cap stocks and selected emerging markets.
- Many of these themes are reflected in the Natixis multi-asset hybrid model portfolios.
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