Strategists and economists can't seem to agree on what the future holds, leaving investors disillusioned about prospects for "normal" returns. Of course, economic growth comparisons to a year ago will grow increasingly difficult to sustain mathematically. However, these are hardly the seeds of a double-dip recession, and we think there are reasons to be hopeful that the second half may be even stronger than the first half of 2010.
Rattled investors seem to be anticipating slower growth and deflation due to European austerity measures meant to address soaring fiscal deficits, Chinese monetarytightening, tax increases, burdens of health care reform and financial regulation, high unemployment, and otherconcerns. On the other hand, the five key drivers we've identified are reinforcing U.S. growth, while benefiting from an unusual global synchronized recovery. Our concerns include increasing inflation risks, attributable to often lagged demand-led price pressures. Read article.
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