Markets see clear skies ahead amid summer breeze

Singapore

IF 2017 heralded the onset of spring in the financial markets, 2018 is turning out to be full-blown summer.

As stocks around the world begin the new year strongly and indices hit new highs, analysts and investors interviewed by The Business Times say there appears to be no end in sight for the business cycle. They struggle to name any risk they are particularly concerned about.

"It is too early to expect a big reversal," said Ibra Wane, senior equity strategist at Amundi, Europe's largest listed asset manager.

"A big reversal usually happens only some months before a turn of the economy. We have good visibility on the economy till mid-2019," he said.

Mr Wane said the recovery in the next one and a half years is supported by high consumer confidence in US and Europe feeding through to corporate investment, a less mature business cycle in Europe, and tax cu…