Country cross-currents

Different markets in different countries have their own dynamics. That’s where there can be a diversification benefit to investing globally.

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Country cross-currents
Welcome to the Know the Difference Minute for Thursday, June 22nd.
Remember the nursery rhyme Ring around a Rosie? It has a part that goes, “ashes ashes we all fall down.” Economies and markets can sometimes feel like that. Sometimes, but not always, they rise or fall together.
But most of the time, different countries have their own growth and inflation dynamics. Different markets in different countries also have their own dynamics. That’s where there can be a diversification benefit to investing globally, which is what we do at Annex.
China is launching stimulus programs. The US has little appetite for fiscal stimulus. The Fed is threatening to hike more, the Bank of England surprised markets by actually hiking a lot more than expected. Japan has the pedal to the metal with monetary stimulus and China is set to open the floodgates. There are a variety of issues but also opportunities around the world.
I’m Brian Jacobsen, Chief Economist at Annex Wealth Management. That is your Know the Difference Minute.