- The global economy is growing, despite pockets of weakness;
- Corporate earnings growth will likely sustain higher stock prices;
- Valuations are still moderate;
- Negative real interest rates and government bond yields and the yield gap between equities earnings and government securities favour stocks;
- Continued growth in global excess liquidity;
- Economic conditions are not robust enough yet for central bankers to tighten monetary conditions in developed economies; and
- Central bankers have committed themselves as lenders of last resort in the US, euro area and Japan, hence containing periodic bouts of fear related to the twin dysfunctions of debt and deficit in these economies
(adapted from Invest, Sunday Times 28 Apr 2013)
