Capital Economics: US GDP Expected To Rise; But Japan, EU Stocks Are Better Bets

With US durable goods orders up 4.8% in October, nearly tripling the expected 1.5% rise, talk of inflation on the horizon begins to become more relevant. Add to this November 23 analysis from Capital Economics that raises US GDP growth, inflation and interest rate targets for 2017 – and says President-elect Donald Trump’s fiscal stimulus won’t matter much to equities – and the bumpy picture for 2017 comes into focus.

Capital Economics raises GDP forecast to 2.7%, but is it priced in?

Among the nuggets of good news is that Capital Economics is expecting in 2017 is 2.7% GDP growth, up from 2.0%, and a 3% inflation target measured by the...