Skip to main content

iStockphoto/iStockphoto

Globe editors have posted this research report with permission of Canaccord Genuity. This should not be construed as an endorsement of the report's recommendations. For more on The Globe's disclaimers please read here. The following is excerpted from the report:

After remaining stuck around 3 per cent for the past five years, global economic growth appears set to improve in 2017, as suggested by the OECD Leading Indicator indexes for G7 and BRIC countries. The JPMorgan Global Composite PMI and the IFO World Economic Expectations index are entering 2017 in a strong uptrend.

In fact, for the first time since 2006, the global economy could experience a late-cycle growth synchronisation between developed and emerging market economies. The IMF pegs global GDP growth at 3.4 per cent (up from 3.1) for 2017, with emerging markets expected to account for 78 per cent of world GDP growth.

Story continues below advertisement

Investors are reminded that global growth re-acceleration does not necessarily imply the outperformance of growth vs. value stocks. In fact, there is a negative correlation as investors pay a premium for growth only when it is scarce. When global growth accelerates, globally geared (i.e., technology and industrials) and resource sectors (energy and materials) usually lead markets. Inflation-sensitive groups, such as REITs and golds, also tend to perform relatively well.

Read the full report here.

Globe app users click here for the full report

Read other research reports here.

Report an error Editorial code of conduct
Comments

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • All comments will be reviewed by one or more moderators before being posted to the site. This should only take a few moments.
  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed. Commenters who repeatedly violate community guidelines may be suspended, causing them to temporarily lose their ability to engage with comments.

Read our community guidelines here

Discussion loading ...

Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.
Cannabis pro newsletter