US equities reach valuation 'sweet spot'

Rapid improvement on 2016

clock • 2 min read

The US economic environment has changed materially over the past two quarters. While investors were debating the risk of deflation and an approaching recession early in the second half of last year, the outlook has swung full circle to one of reflation and an improving economic environment.

Consumer confidence is currently at a post credit-crisis record high and chief executive confidence is at a decade high level.  While US industrial production experienced contraction through most of 2016, its outlook has improved materially over recent months as indicated by the purchasing manufacturers' indices.  The overall confidence in continuing US economic expansion is improving as indicated by the authoritative Conference Board leading economic index. Dollar and treasury yields spike on back of hawkish Yellen speech This economic backdrop indicates that the outlook for US...

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