Economic Backdrop Continues to Improve; Revenue Growth Helping to Boost Earnings

Here's What We're Thinking

May 3, 2017

Economic data globally remains supportive for markets helping factory orders, investment spending and earnings recover to multiyear highs. As economic data has remained firm, the IMF has upgraded its 2017 global economic growth forecast to 3.5%, a significant improvement from the 3.1% estimated for 2016. The improving economic backdrop is translating into rapidly improving corporate fundamentals as reflected in double-digit earnings growth across major markets (S&P500 EPS: +12.8%y/y). With global equities having registered six consecutive months of positive returns, the widelyfollowed VIX volatility index fell to a 10-year low on May 1st reflecting the broad improvement in market fundamentals over the past year…

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