As the warmth of the spring air takes hold across America, so too are investors warming up to the notion of the stock market building on its post-election gains.
There is even a rising measure of expectation that stock market gains could accelerate as the year progresses, now that earnings for many sectors tied to the economy are expanding at a pace not seen since pre-2007. What is most encouraging is the breadth of the strength of earnings for the multi-national companies that conduct more than 50% of their business overseas.
It is not just the U.S. economy that is rebounding, but developed and emerging market economies are in the early stages of snapping back as well. It is interesting to see how some major trends are unfolding in the current market, like the widespread evolution of a more consumer-driven Chinese economy.
China???s central government is focused on transforming its economy from pure manufacturing and exports to a more balanced economy that reflects finished imports for a more diversified and affluent middle class of consumers that totals hundreds of millions of people. The rise of online retailing, social media, smart phone use, luxury car purchases, travel and leisure and private education is remarkable.
To read more on the rise of China’s internet economy, please click here.