First Quarter Income Strategy Review
For the past few quarters, the themes we focused on were synchronized global growth, stable (albeit strengthening) inflation trends and gradual removal of central bank accommodation. Today, we believe most of these themes are largely intact.
Global economic activity expectations in Q1/18 continue to be strong, although they have trended down from last quarter. Similar to the previous quarter, only one of the major countries we track (South Korea) is in contraction (blue bars). This broad-based synchronized strength continues to support our conviction of robust global growth over the first half of 2018.