29 June 2019

Weekly Insights From The FNArena News Desk 25/06/19

Before reading this week’s update on the global macro and equities picture, investors are advised to add three new words to their financial dictionary:

–Endcyclitis – the fear that the global economic cycle is about to turn for the worse
–ABC – Anything But Cash; primal, though logical response to exceptionally low interest rates; can be a specific strategy, a portfolio positioning, a necessity for survival, or simply an attitude
–Market melt up – when equities embark on a relentless rally to the upside; opposite of a melt-down

With equity markets in the USA, and now also in Australia, near all-time highs and with bond markets signalling central banks will be cutting interest rates (further) in the year ahead, it has become fashionable again to be bearish on the world, the global outlook and medium term prospects for risk assets; or make that for all assets, since central bank policies post-GFC are often casually summarised as “bubbles everywhere”. Before reading this week’s update on the global macro and equities picture, investors are advised to add three new words to their financial dictionary:

–Endcyclitis – the fear that the global economic cycle is about to turn for the worse
–ABC – Anything But Cash; primal, though logical response to exceptionally low interest rates; can be a specific strategy, a portfolio positioning, a necessity for survival, or simply an attitude
–Market melt up – when equities embark on a relentless rally to the upside; opposite of a melt-down

With equity markets in the USA, and now also in Australia, near all-time highs and with bond markets signalling central banks will be cutting interest rates (further) in the year ahead, it has become fashionable again to be bearish on the world, the global outlook and medium term prospects for risk assets; or make that for all assets, since central bank policies post-GFC are often casually summarised as “bubbles everywhere”.

To continue reading “bubbles everywhere”, click here

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