Despite uncertainties that beclouded the global economy earlier in the year, global investors have had a very profitable 2017. For instance, US equity indices are trading at record highs. 
European stocks are defying political uncertainties, in fact, Spain's IBEX 35 is 9.4% up YTD despite Catalonian crisis and Emerging and Frontier markets such as Nigeria have rebounded from the lows of 2016. The truth is, investors are not concerned about political uncertainties.
The reasons for above are not farfetched. Despite uncertainties, global growth is strengthening. Even with rate-hikes by the U.S. Fed, massive Asset Purchases by Central Banks continue to drive global funds flow.
The reasons for above are not farfetched. Despite uncertainties, global growth is strengthening. Even with rate-hikes by the U.S. Fed, massive Asset Purchases by Central Banks continue to drive global funds flow.
For instance, financial assets accumulated by the Fed, ECB, BOE, and BOJ is close to $1.0tn in 2017. Meanwhile, decent recovery in oil prices has stabilized currency volatility across emerging and frontier markets such as Nigeria.
Thus, demand for local equities trading at very cheap valuation is driving returns to record high. Additionally, corporate earnings which were pressured by the severe economic condition of 2016 are printing impressive performances in 2017, largely due to lower base effect.
Overall, the outlook does not point to a near-term pullback as expectations around Q3/FY-17 earnings and increased pro-growth reforms are set to drive further uptrend.
Overall, the outlook does not point to a near-term pullback as expectations around Q3/FY-17 earnings and increased pro-growth reforms are set to drive further uptrend.
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