Investors may find growth rates in Europe and emerging markets attractive, particularly relative to the United States. In Europe, for example, growth has surprised to the upside, while inflation and low valuations are further contributing to a positive outlook for the region.

We believe many emerging markets appear well positioned for growth over the next several years. Contrary to general expectations, the Chinese economy is holding steady. Brazil and Argentina may be on the verge of a recovery, and India is instituting policies that offer the potential to boost the country’s growth rate.

The United States may be able to sustain its 2% growth rate, but we believe that breaking through that level will require fiscal expansion. In the current environment, we view this as an unlikely development.

Follow @OppFunds for more news and commentary.