Rathbones: where to find growth in a desynchronising world

Global economic growth in 2018 is likely to be robust and synchronous, but not quite as good as 2017, says Rathobones.

Here are 10 charts showing why they think that this is the case.

Despite a favourable macro economy, earnings momentum has weakened sharply into 2018.

Yield differentials between 1 and 1o- year US Treasuries are flattening; moves sub-zero have predicted 9 out of 10 of recessions.

US growth may peak soon, but a recession is unlikely, and bear markets are rare without a recession.

Without fiscal support UK GDP growth is likely to disappoint, mainly due to negative real wage growth pinching consumers.

Ten-year gilt yields could rise further with rate expectations, but more than one interest rate hike is unlikely.

The UK’s large multinational companies are cheap relative to the US, Europe and Japan.

Investors are treating the FTSE 100 as riskier than the FTSE 250 – this is a rare occurrence too.

Will Corbyn enact a harder-left agenda than the actually quite un-radical Labour Manifesto implies?

Japanese companies have become more focused on shareholder value and improved profit margins significantly.

China’s 19th National Congress should support a move toward a domestic-driven economy.