Global clouds clearing

The outlook for the US equity market is bright, but the Greek story is not over yet.

Summary: I believe that progress in implementing reforms in Greece will be slow, but Europe will continue its modest recovery this year. Iran will begin to ship more crude oil with sanctions phased out, but I still expect somewhat higher prices for crude as the developed world economies recover. China may admit that the 7 per cent growth that has been reported was too high. I am still optimistic about the outlook for the US equity market.

Key take-out: Many of the background conditions that had concerned investors (such as Greece and Iran) have turned favourable, which should improve the outlook for equities in other major markets around the world.

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