As economic and monetary conditions continue to diverge between the United States and the rest of the developed world, stocks are poised for continued strength.
Expectations are high as the US economy kicks into gear and the Federal Reserve starts to make plans for liftoff. Meanwhile, falling oil prices present a potential speed bump on the runway.
Markets rallied yesterday after the release of “dovish” Fed minutes, however weak data out of Germany this morning appears to have quelled the momentum.
Diverging growth and monetary policy dynamics lowers the likelihood of overheating and could carry the current global expansion into becoming one of the largest on record.
Economic recovery remains slower in Europe than in the U.S., causing renewed discussion around the European Central Bank’s options to try and jumpstart the Eurozone economy.