Looking to the balance of this year and into 2017, Portfolio Manager Ken McAtamney expects a number of recent macroeconomic and market trends to persist.
He believes we will continue to see a modestly positive uptrend in inflation, leading to less accommodative central-bank policy—and as the global bond markets recognize these influences, we will see a continuation of equity-market leadership driven by the more cyclical elements of the economy.
In this environment, the William Blair Global Equity team has been considering a further move into some of the more cyclical areas of the market. Industries and companies in the financial sector are also of interest to the team as the prospect of higher rates and steeper yield curves could drive earnings growth as well as lift the currently depressed valuations.
Read McAtamney’s Outlook