Market Commentary Q3: (Almost) Always Look on the Bright Side of Life
SEI has issued its Third Quarter Economic Outlook for 2017. the outlook contains information about:
- The current bull market in U.S. equities is now the fourth-longest in duration since 1893.
- The world is in a synchronized economic upswing for the first time in more than five years, with a large portion of the world growing at a slightly better-than-trend pace.
- Every recession in the past 60 years was preceded by a yield curve that turned flat (indicating a small positive difference between long and short rates) or inverted (when short-term rates rise above long-term Treasury yields). History would suggest that the yield curve is not yet tight enough to indicate an imminent recession.
- The recent drop in the U.S. dollar coincides with the better global macroeconomic outlook. Although U.S. policy is further along the tightening path, other central banks have begun to raise policy rates or may do so soon.