Talking Point  

What's next for the US economy?

  • Explain how the present economic climate might impact on the return from equities
  • Describe why stagflation is not inevitable in the US
  • Identify why the largest technology companies are trading at current multiples
CPD
Approx.30min
What's next for the US economy?
As the US economy recovers and post-pandemic spending gets underway, fund managers are reviewing their exposure to US equities
Enter
keywords

The US economy faces some potentially thorny challenges, such as oil and inflationary ‘shocks’ as it emerges into the ‘new normal’. However, some fund managers are optimistic about its ability to cope, and are looking to increase their exposure to US equities.

Optimism about US economic performance is partly based on the volume of savings built up and debt paid down by Americans during lockdown. Also, the impact of oil-price spikes in the medium term is anticipated to be less than previously.

The forecast for smaller businesses struggling with the inflationary spike is less than rosy, however, while those at the larger end of the corporate scale may simply absorb the costs and put up prices.

This article examines the outlook for the US equity markets, and is worth 30 minutes of CPD.

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. What are long-duration assets?

  2. According to James Thomson, what proportion of US household consumption is on energy?

  3. Which markets would be expected to outperform if value shares do well?

  4. What does Gabrielle Boyle believe is a deflationary force in the economy?

  5. What does Cormac Weldon believe will help maintain economic growth in the US this year?

  6. According to Richard De Lisle, what proportion of the total global index is made up of the US market?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Explain how the present economic climate might impact on the return from equities
  • Describe why stagflation is not inevitable in the US
  • Identify why the largest technology companies are trading at current multiples

I completed this CPD in

To bank your CPD please complete the form below.

Were the stated learning objectives met?

Why weren't they met?

What did you learn from undertaking this CPD exercise?

Why did you undertake this piece of learning?

Any comments about this article or FTAdviser's CPD in general?

Banked!

Congratulations, you have successfully completed and banked this piece of CPD

Already Banked!

You have already banked for this article.

To bank your CPD you must or

Register

One or more questions have been incorrectly answered,
 please review your answers and try again.

Please complete all the above text fields to bank your CPD.

More Investments CPDSee my completed CPDSee all CPD