World economy moves from late cycle into recession

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Sobering but very clear reading from the latest mid year outlook report by Capital Group, the near $3 trillion funds management firm. President Rob Lovelace has an interesting take on the trajectory of the global economy:

We are living through a pivotal time in history, marked by geopolitical realignment, high inflation, volatile financial markets and the end of a 40-year period of declining interest rates. The title of this new era could be Brave New World or Back to the Future. But the title I would select is Revenge of the Boomers, because a lot of these events are rhyming with the past, particularly the early 1960s.

That’s when we saw interest rates bottom out after decades of decline, as well as the rise of the Cold War era, which is unfortunately rearing its head again in some respects. Despite these challenges, I remain optimistic about the investing environment for several reasons.

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