Prospects of a global trade war are overshadowing the good news in the US

'Increased level of fear and uncertainty'

clock • 2 min read

The US economy appears very healthy. Unemployment is down to historically low levels and we are finally seeing some wage inflation.

This is helpful because consumer spending drives 70% of the economy.  Politically, the environment of less regulation is positive for corporations, and the recently passed tax reforms will boost profits and increase return of capital. Some of that cash may be used on capital expenditures, benefitting industrials, materials and technology companies, but much of it will likely be returned to shareholders through dividends and share buybacks. It should be no surprise that the consumer sector would benefit from a strong economy. Financials should also perform well, with more people tak...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on US

US adds just 12,000 jobs as unemployment rate remains unchanged
US

US adds just 12,000 jobs as unemployment rate remains unchanged

Significantly below expectations

Sorin-Andrei Dojan
clock 01 November 2024 • 2 min read
Portfolio managers take defensive stance to mitigate risk of 'coin toss' US election
US

Portfolio managers take defensive stance to mitigate risk of 'coin toss' US election

Hedging their bets

Linus Uhlig
clock 01 November 2024 • 5 min read
Morningstar's Michael Field: European equities poised for volatility amid US election outcomes
US

Morningstar's Michael Field: European equities poised for volatility amid US election outcomes

'Period of uncertainty'

Michael Field
clock 01 November 2024 • 3 min read
Trustpilot