Good morning!
You can access the latest market update from RBC Global Asset Management by clicking here for the direct weblink, or here for the PDF.
The Economy
- US recession remains unlikely in the near term view. Despite lumpy tariff and tax policy, the global economy continues to chug along
- GDP growth is forecast to continue for most developed economies, with some acceleration, and some moderating.
Bonds: what you see is what you get
- with interest rates continuing to come down globally, fixed income returns will moderate over time.
- the yield to maturity figure is what one should expect in terms of forward looking returns
Equities: profits in focus
- with valuations appearing extended, markets are pricing for a fairly narrow range of positive outcomes
- extending the current rally will rely heavily on corporate performance, which is no surprise.
- Absent a US recession, give stocks the benefit of the doubt
