Penrich Research
USA
Canada Euro Area
UK
Swiss Sweden Norway
Japan Australia NZ
The United States
US Economics
Growth has decelerated back down below 2% during the
past year
Employment growth resumed last year
but unemployment remains close to 9%
High oil prices have lifted inflation above 3%
Real net exports have risen but rising oil prices have kept the external deficit
at 3% of GDP
The fiscal deficit has narrowed in the past two years but still exceeds 8% of GDP
US Markets
The USD is well below its historical
norms
Fed Funds are priced to remain
unchanged until 2014
10 year bond yields are near 2% which
is a multi-decade low
Equities have generated a total return of
5% in the past year
Investing in the US
Short-term interest rates may not
remain low for as long as markets are pricing
Bond yields are unsustainably low and
are likely to rise
The USD is too low and will rise,
particularly when interest rates rise
