Market Commentary Q2: Dancing to a Song with a Bad Beat
SEI has issued its Second Quarter Economic Outlook for 2017. The outlook contains information about:
- In the U.S., stock-market sectors that did well immediately following the election of Donald Trump as President have corrected sharply and are now well below their pre-election levels.
- We are sticking to our expectation that a major tax bill will be pushed through Congress. This should boost the prospects for economic growth, but could eventually add to inflationary pressures.
- Improving economic fundamentals provide a good foundation for the rally in European equities. Most countries have experienced improvement in their business-sentiment indicators, even Greece.
- We still have concerns about the sharp increase in debt across developing economies. Much of that debt increase has been borne by the corporate sector, especially in China.