Understanding the Current Economic Cycle

The current economic cycle appears to be in the late innings, suggesting a mature phase; however, as in baseball, there is no definitive timeline and situations may extend unexpectedly. While some argue that the global economy is demonstrating signs of early recovery, there is growing consensus that we may be nearing the end of the cycle. This uncertainty makes it crucial for investors to remain cautious, recognise the potential for an extended cycle, and be prepared for sudden shifts. Additionally, the ongoing dynamics in U.S. economic policy, including potential interest rate changes, have significant implications on emerging markets, particularly in terms of how they respond to U.S. monetary moves.