After several years of positive global economic growth and upwardly mobile stock markets, many investors are fretting about when the good times will end. But Alex Sasso, lead manager of Norrep II, believes there's still some sand left in the hourglass.
"We saw phenomenal growth across the globe in 2017 and early 2018, and we continue to be in an era of positive growth although the pace is decelerating," says Sasso, chief executive officer and portfolio manager at Norrep Capital Management in Toronto. "We are shifting into a late-cycle environment, but contrary to what some people believe, this stage can be good for commodities and equities."
Sasso says the tax cuts introduced earlier this year in the United States added an extra injection of fuel to the cycle, stimulating U.S. stocks and spreading positive sentiment to other world bourses. While there has been some bumpiness in stock prices this year, consumers continue to spend and second quarter earnings reports have generally been strong, Sasso says.
