David Jane: Is this another 'Goldilocks' period for markets?

Value areas may catch up on market pivot

clock • 2 min read

Despite a huge debt mountain and fanciful private equity valuations, David Jane argues economic indicators do not imply an immediate recession

We have seen a big rally in risk assets, in a period where bond yields have continued to fall - in effect, another ‘Goldilocks' period of low rates, low inflation and low growth. Economic data, however, suggests we need to consider two other possible outcomes - a further drop in yields and an economic contraction, or a re-acceleration in growth and inflation. Recent economic data has largely been disappointing and, in some cases, looks recessionary - particularly in Germany - but things have begun to stabilise. The leading indicators do not, however, imply recession in most economies, an...

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