Where are we in the economic cycle (Part2)?

Fidelity's "Investment Clock" can be a useful tool to help investors understand where we are in the economic cycle and what might come next. The Clock currently shows there has been a distinct turn in the global economy and that it is on the cusp of moving from a phase called ‘reflation' towards ‘recovery', as shown below. 

A wealth of data supports the move towards the early stages of a synchronised upturn in growth, with the Clock's scorecards for global growth and inflation improving rapidly. The lead growth indicator is at its least negative level since inter-bank finance markets froze in July 2007 and we are in the early stages of an upturn in rebuilding of inventories as well as business and consumer sentiment in many economies. While the global inflation scorecard is still negative, it is at its least deflationary level since the Lehman failure in September 2008. It is rising on the back of rising oil prices and some improvement in economists' consumer price index forecasts.

The above article has been sourced from FIL Investment Management (Australia) Limited.

Important Information

The above information provides an overview or summary only and it shouldn’t be considered a comprehensive statement on any matter or relied upon as such. The above information doesn’t take into account your personal objectives, financial situation or needs. It’s important for you to consider these matters before making any financial decision and I recommend you seek help from a financial adviser.