Loose monetary policy will continue unless unemployment declines

NORTH AMERICA

We are now coming to the end of the rapid expansion phase of the economic cycle.

Hopefully, the economy will now enter a more steady expansionary phase of growth, allowing the equity market to regain its footing after a natural adjustment phase. However, the current picture is a textured one, with numerous positive and negative aspects combining to give us a view on the market that is broadly neutral. On the positive side, consumer confidence is improving. Comparison store sales and auto sales have come in ahead of expectations. For the recovery to properly consolidate, we will be looking for stable consumer confidence to translate into continued sequential spending ...