Yes the AFR would like to debate you, on a strong global...

Yes the AFR would like to debate you, on a strong global economy, and their evidence is rhetoric. This narrative pushed onto readers yesterday.... notice anything missing, like a CRE valuation/ banking crisis? Oh, probably not worth mentioning I suppose....cos low nterest rates solve everything....
Ten reasons why it’s time to invest globally in 2024

1. For a start, inflation is dropping back to target.

2. Interest rates are expected to start falling later this year across the major developed economies (except Japan) as inflation eases... lower rates should support share prices.

3. Consumers are still spending, supporting retail sales and broader economic activity, especially in the services sector

4. International travel is returning to normal as airlines gradually rebuild capacity.

5. The global economy is still growing. The OECD expects this to ease from a projected 2.9 per cent in 2023 to 2.7 per cent in 2024, .

6. Generative artificial intelligence is reshaping the global economy in a similar fashion to the earlier adoption of the personal computer, internet and smartphone..

7. We have entered a new period of innovation as a broader swath of companies exposed to electrification, automation, on-shoring and medical breakthroughs invest heavily in the markets of the future.

8. Last year’s equity rally was unusually narrow, bringing the opportunity for a broader sharemarket recovery this year.

9. Companies now face easier financial conditions, as expectations of lower interest rates have reduced yields on longer-term bonds. As these feed through into lower borrowing costs they should support profitability, and companies will start to invest more.

10. The discount at which global smaller companies are valued relative to larger companies is at a historic high. Small cap companies can take decisions more quickly, better manage inventories, control costs and exploit new opportunities to grow earnings. This enables them to outperform as the economic recovery broadens, typically six months or so after interest rates peak.