The combination of tighter monetary and fiscal policy, higher oil prices, natural disasters and sustained high unemployment is placing increased pressure on global spending. Matt Sherwood, Perpetual’s Head of Investment Market Research examines these trends and concludes that the global equity ‘sweet spot’ has ended. However, this won’t by itself end the rally, but will slow it down, and early-cycle stocks that have outperformed the market over recent years are likely to become the laggards for a while.

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