Monday, November 10, 2014

Macroeconomic Fundamentals seem good to buy equities...

USA is the World's largest economy with just below a fifth  of the World's GD P. (https://www.quandl.com/c/economics/gdp-as-share-of-world-gdp-at-ppp-by-country)

That economy is quite optimistic of the ability of its private wealth to create more wealth. There is thus a rebound in growth there which is going to see the Dow climb further. With the lessening of geopolitical tensions, the environment is conducive to growth.

IMF estimates the World output to grow at 3.8 % in 2015. US Economy is to grow at 3 %. The Euro Area , though slow, will grow art 1,6 %. China is expected to grow at 6. 8 % and India at 6.5 %.
So 2015 is a World growth story and that portends quite a strong growth in equities. With corporations on to disruptive technological research, the growth may accelerate. If India pushes on with its reforms, then there is likelihood of an acceleration.

So there is scope for a buy decision for equities quite sometime now. 

No comments:

Post a Comment