Rothschild Asset Management: Monthly Letter – February 2018


Marc-Antoine Collard, Chief Economist, Head Economic Research, Rothschild Asset Management

According to recent business confidence surveys, the start of 2018 saw a further solid and broad-based expansion of global economic activity. Most forecasters have recently increased their 2018 and 2019 global economic growth projections, in part on the back of the expected impact of the recently approved US tax policy changes. Yet, several uncertainties surround these projections. Ironically, an economic acceleration faster than envisaged could put upward pressure on inflation and lead to a more abrupt tightening of US monetary policy, contributing to the worsening of global financial conditions. In fact, the current turbulence is an early indication of how the investment backdrop will become much more challenging as global inflation continues to rise and central banks adjust accordingly.

Read the full analysis in the Monthly Letter (PDF 164 KB)