Temple is looking to an additional three-to-five years of growth with mid-to-high-single digit earnings growth for the US equity market.
He explains: “Investor anxiety has largely been based on two factors. The first is that the US has enjoyed almost seven years of growth since the financial crisis. However, expansions do not die of old age.
“Rather, economies enter recessions when they no longer have excess capacity, inflation increases, and/or central banks tighten monetary policy to slow growth. The gradual nature of this recovery means the US has plenty of room for further growth.
“The second is that a weak global environment and a strong dollar will drag down the US economy. However, domestic demand in the US has held up well.
“Real personal consumption expenditures, which represent over two-thirds of US GDP, are growing more rapidly than overall GDP and rose by 3.1% in 2015, its fastest annual growth since 2005.”
