From an economic perspective, faster
GDP growth historically benefits cyclical sectors, which include financials and energy, while the defensive sectors like utilities have historically underperformed in a faster growth environment due to rising interest rates.
From an economic perspective, faster
GDP growth historically benefits financials and cyclical value sectors like energy.
Not exact matches
Credit Suisse is projecting 2.8 percent
GDP growth this year, and Golub pointed out that Institute for Supply Manufacturing readings are at a level that would make a recession
historically unlikely for at least the next 12 months.
These
GDP growth rates have
historically been consistent with total returns of around 10 %... The main are of concern is earnings.
Well, we know that earnings, revenues, and nominal
GDP have
historically proceeded at a peak - to - peak
growth rate of 6 % annually across economic cycles.
In any event, the problem for investors is that whatever increment we could possibly observe in
GDP growth pales in comparison to the fact that the most
historically reliable market valuation measures are far more than double their historical norms.
First,
historically, and internationally, it's not the rate of money
growth per se, but the
growth of government spending as a share of
GDP (particularly spending that doesn't add to the productive capacity of a nation), that drives inflation pressures.
On average for every 1 % of
GDP growth, the small - cap index, S&P 600,
historically gained 5.1 %.
«
Historically, you get a 17 %
growth rate in a bull market with nominal
GDP at 7 and real
GDP almost at 4.
Historically, nominal
GDP growth, corporate revenues, and even cyclically - adjusted earnings (filtering out short - run variations in profit margins) have grown at about 6 % annually over time.
Historically, profit margins do not fall until the wage share of
GDP rises, with the typical lag of 21 months from the trough in wage
growth until the peak in margins.
In the ISM June report, the ISM Manufacturing Index and the Non-Manufacturing ISM Index both accelerated to levels
historically associated with higher real
GDP growth going forward.