The US economy has a number of attractions when its comes to investing. Photo / AP
OPINION:
The past 12 months in financial markets has reminded us that earnings trends for businesses generally follow central bank policy.
As interest rates have gone higher, the outlook for companies’ earnings have gone lower,
albeit with a lag of about 18 months.
So, in an environment of volatility and uncertainty is there such a thing any more as an investing “safe haven”?
In my mind, the United States, despite its many challenges, remains the key exception, at least among larger and more liquid markets.
Now, I am not suggesting US earnings trends won’t follow the global monetary cycle, but moreover, the US continues to provide qualities that investors look for when thinking about long-term investing.
So, what qualities should such a “safe haven” exhibit? Five come to mind, and the US ticks these boxes.
• A large domestic market, with a limited…
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