The world economy has reached an unusual state of stability. Almost every country is seeing positive growth –but nowhere is growth booming out of control. Inflation is also firmly in ‘goldilocks’ territory.

The lack of wage growth in the U.S. labor market has been a frequent topic during our global multi-asset investment calls. Typically at this point in the economic cycle (mid-to-late cycle), wages are growing at a 4%+ pace. However, wage growth has been very modest over the past few years (2%-3% growth), puzzling many investors and frustrating many workers who have expected larger increases.