Here is fantastic graphic from Bloomberg that shows US corporate overseas cash holdings:
As market commentators attempt to deride the “Trump rally”, they are actually missing the broader picture of the multi-faceted economic growth that is going on globally.
Scott Grannis provides some great commentary and charts in the following blog post:
LINK: Global Outlook Improves
US markets have continued to trade higher in the new year. Whether this unfettered optimism will be justified remains to be seen. However, what is abundantly clear is that American businesses are feeling very good about themselves and the prospect of tax reforms under a Trump presidency and Republican control of both the Senate and the Congress.
Here’s Scott Grannis with some more charts. Grannis also makes the prescient point that US businesses have been under-investing in capital goods and that improved confidence could do much to fill the gap:
Stocks are hot, bonds are not. This is a dynamic that investors should be getting used to. We will soon start to see record outflows from bond funds. How much of that money flows to equities remains to be seen, but it should be enough to sustain this rally over the near term.
Trump’s victory seems to have ignited ‘animal spirits’ in capital markets…
To follow up on the theme of our previous post regarding the different outcomes between our chosen European equity fund and the EURO STOXX 50 index, here is a more in depth commentary from Ben Carlson regarding historical of European stocks -vs- US stocks: