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The fundamental outlook for the global economy and markets in largely unchanged, but concerns are multiplying, according to a midyear outlook published from Boston-based Natixis Investment Managers.

Although the global earnings trends remain solid, the market outlook “has deteriorated” through the first half of 2018, the report warns, and, the second half may be tougher on investors.

Prospects for continued global growth are looking a bit gloomier. “While global real GDP for 2018-2019 remains in a still-respectable 3.5%-4% range, cracks in the synchronized global growth story are starting to appear,” the report states. Specifically, growth appears to be slowing in the United Kingdom, Japan, China and emerging markets generally.

Additionally, there is the prospect of tighter monetary policy around the world. “The benign tightening envisioned by hopeful investors has now become somewhat less benign,” the report states.

Other concerns include rising trade tensions, a flattening yield curve and higher inflation.

“For now, the global economy remains strong enough to support risk assets like stocks and the credit sectors of the bond market. It would be premature to get bearish, in our view. However, the clouds on the horizon have become a bit darker in recent months, so we reiterate that this late in the cycle, discretion is the better part of valor,” the report states.