David Fleer
Bristlecone Value Partners, LLC
12301 Wilshire Blvd., Suite 320
Los Angeles, CA 90025 USA
Work 1-877-806-4141

3rd Quarter Review: More of the Same

October 13th, 2016

In economic news, it was pretty much more of the same. The US economy continued to grow at a tortoise pace during the 3rd quarter. On a positive note, wage growth is accelerating and residential real estate values continue to increase around the country, which bodes well for the future. Typically, as people earn more, and feel wealthier, they also spend more, and in doing so drive further growth. Although the US Federal Reserve did not increase rates at its meeting in September, expectations are that it will do so in December.

In Europe, on the other hand, growth remained elusive. Governments appeared more inclined to relax the austerity policies that have been the hallmark of the past few years. The British pound felt the strain from the uncertainty that comes with the Brexit vote. The business community has the most at stake if trade with England’s partners suffers. There is a risk that investment will slow down in the UK, and possibly in continental Europe, until a clearer picture emerges of the terms of separation from the European Union. In the rest of the world, Emerging Markets recovered dramatically this year. Latin America and particularly Brazil led the way on investors’ hope that the impeachment of President Rousseff will lead to more market-friendly policies going forward. Read the rest of this entry »

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