Bestinvest Logo

Breaking the bad news cycle

Read about global markets and trends in this monthly Investment Outlook.

Published on 06 Jul 20231 minute read

This monthly commentary gives a roundup of global markets and trends.

In this edition:

After a poor performance in 2022,  share prices have rallied this year on easing recession concerns. There are several reasons why stocks could defy the bad news associated with recession:

  • Momentum - in early June the US S&P 500 was up 20% from its low point in October 2022, marking a new bull market. The average bull market lasts 5.5 years1
  • Covid-era policies provide support – it’s estimated that households have plenty of unspent funds left over from Covid. In developed economies, these range from 6% of GDP in the US, 7% in the Eurozone, 8% in the UK and 9% in Japan2
  • Dollar depreciation – we have a negative outlook for the US dollar – a weaker US dollar, when accompanied by global growth, is usually positive for financial assets


1 Refinitiv/Evelyn Partners

2 Citi, How Much Firepower Do Consumers Have Left in DM Economies?, 5 May 2023

Important information

The value of an investment may go down as well as up and you may get back less than you originally invested.

Get insights and events via email

Receive the latest updates straight to your inbox.

By clicking the following button you are agreeing to our website conditions.

You may also like…

Investment Outlook

Diversifying the diversifiers amid geopolitical tensions

07 May 2024 | minute read

Investment Outlook

Markets are breaking out on the upside

10 Apr 2024 | minute read

Investment Outlook

Can economies balance growth and inflation?

07 Mar 2024 | minute read