Economic Overview: Fourth Quarter 2014

We anticipate that the slow global economic recovery that we’ve experienced since 2009 will continue through 2015. Worldwide economic growth will likely fall somewhere in the range of 3.25%-3.5%. Expectations for Europe are about the same as last year, just shy of 1%, while China’s growth should decelerate to about 6.5% or 7%. After stumbling to less than 0.5% growth in 2014, we see Japan’s growth picking up to the 1% range in 2015. Japan will be taking a more aggressive stance to jump start the economy and shift from deflation to inflation, implementing measures similar to the Fed’s campaign of Quantitative Easing. The European Union is expected to utilize some measure of Sovereign Quantitative Easing as well, provided the various members can come to agreement.

The U.S. will prove to be the engine of the global recovery in 2015. Growth should jump from the 2.2% level of the past couple of years to about 3%. Driving the increase will be higher employment, investment in residential housing, increased personal consumption and a pick-up in business investment.

Other articles that appeared in the Fourth Quarter issue of Your Family CFO Report include Market Overview and Asset Class Summary. Please call us anytime with questions at 404-874-6244 and feel free to pass our message along to friends.

All references in this publication referring to our average allocation or “typical portfolios” reflect those of the fully discretionary accounts of clients with moderate risk profiles. Actual client portfolios are tailored to individual client circumstances and asset allocations may vary.  Any reference to returns reflect the performance of asset classes, are for illustration purposes only, and do not reflect the returns of any specific investment of Smith & Howard Wealth Management. No representation is made that any investment decisions discussed herein have been profitable in the past or will be in the future. Past performance is no guarantee of future results. A list of all recommended investments is available upon request.

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