The global economy is positioned for moderate growth in the second quarter of 2019, according to Greek-American businessman and philanthropist John P. Calamos, Sr., founder, chairman and chief investment officer of Calamos Investments.
In its April, 2019 Economic Outlook published on Thursday, the Calamos Investment Committee says that it expects a pickup in the global economy in the second half of this year. It also foresees a steady expansion of the U.S. economy continuing through this year and beyond.
The report says that financial conditions have improved dramatically after a December, 2018 squeeze, and credit spreads tightened significantly. (Tighter spreads are a sign that corporate borrowers can issue debt more cheaply.)
The global growth outlook improved, helped by a contained U.S. dollar, optimism about an eventual resolution to global trade disputes, and data supporting the view that China’s economy could achieve a soft landing.
However, “Investors should not grow complacent,” says Calamos. “Volaltility and sideways-moving markets will characterize this phase of the economic cycle due to a wide range of entrenched global uncertainties.
“Although we see tailwinds for economic growth and opportunities across asset classes, conditions require a highly selective approach,” he added.
The full April, 2019 Calamos Economic Outlook can be accessed by clicking the following link: