A recent article in ETF Trends offers insight on how synchronized economic growth “across the world has been relatively rare in the past half-century, and suggests to us a global economy that is hitting on all cylinders.”

This provides a positive outlook, the article argues, “given our view that market sentiment is driven in part by the market’s collective probability of future recessions.” It suggests, however, that while corporate earnings are currently strong, the tendency of equity investors to equate earnings growth with economic growth may not always be well-founded. That said, the two seem to be tracking well at the moment, according to the article.

The chart shows that, in all major regions of the world, year-over-year earnings growth is “shaping up to be meaningfully positive. This is a milestone, in our opinion,” the article asserts, adding that the rally in both U.S. and international stocks appears to be sustainable. It also argues that international stock valuations remain reasonable relative to U.S. stocks.