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.
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Mutual funds and exchange traded funds are subject to market risk and volatility. Shares may gain or lose value. Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes, regulatory and geopolitical risks. Emerging and developing market investments may be especially volatile. Eurozone investments may be subject to volatility and liquidity issues. The mention of specific countries or sectors does not constitute a recommendation by any particular Fund or by OppenheimerFunds, Inc.
These views represent the opinions of OppenheimerFunds, Inc. and are not intended as investment advice or to predict or depict the performance of any investment. These views are as of the publication date, and are subject to change based on subsequent developments.