Why a lift in US rates is still possible this year

Economy is rebounding

The Federal Reserve now seems more focused on supporting weak global growth, showing less concern for potential inflation as the US edges closer to full employment.

The Fed's more dovish stance, along with the lagged impact from last year's stimulus implemented in China and this year's expanded quantitative easing announcement from the European Central Bank has put the bear case on hold, so we have increased the portfolio's sensitivity to the global economy. We are continuing to overweight consumer staples and utilities, sectors that generally rely less on strong economic growth. Lower energy prices are creating a tailwind for consumers, and consequently we are favouring select restaurant stocks, which should benefit from improved margins due to ...