All the warning signs that had been detected in recent surveys have come to a head. There is now a deep-seated view that core inflation is on the rise and monetary policy should be tightened. This comes at a time when global growth expectations are already softening. |
Before we get too excited, it's worth remembering that eleven rate cuts totaling 475 basis points have failed to deliver any meaningful economic recovery; they have also failed to prevent a major deterioration in US credit quality. |
Higher energy prices have taken their toll of hopes for top-line growth. 'Cost-cutting' as a driver of earnings is back on the radar screen. |
Investors are more confident about Japan. There is a slight wariness about emerging-market equities. |
Investors have become a lot gloomier about the prospects for economic growth, corporate profits and margins -- certainly compared with two months ago, |
Investors have become a lot gloomier about the prospects for economic growth, corporate profits and margins -- certainly compared with two months ago. |
Investors think that the Fed is almost done. That has been a powerful catalyst to get people to commit to equities early in the year. |
It could be an economic recovery and a profits recession. |
Normally at the beginning of a bull market you would want to be in the economically sensitive stocks, and that's not what's running at the moment. |
One of the things that stands out about this project is how it was funded. |
People are already fully invested. |
Pounding the pavement, standing up long hours at events, the kinds of things you have to do in a campaign ... It's definitely disappointing and frustrating. But we'll live to fight another day. |
Reading between the lines, fund managers are bracing themselves for a bear flattening of global yield curves. |
The euphoria we saw at the beginning of the year about the world experiencing a synchronized cyclical recovery has disappeared. While it doesn't feel like a recession is around the corner, fund managers are clearly less confident that the recovery can be sustained. |
The lack of positive growth momentum has undermined risk appetite. |