As new cases of the Coronavirus – COVID-19 – outside of China exceed those inside for the first time, we have to ask ourselves what next? Looking at the reactions of financial markets, governments and people around the world, fear seems to be settling in. The reaction of the financial markets has been growing in …
China – down but not out
In last week’s blog I mentioned the over-valued credit markets in China as a key risk to financial market stability. This week saw Moody’s downgrading of China’s credit rating and its outlook for China changed from stable to negative. The slowing of growth Despite economic stimulus, GDP growth has fallen pretty steadily since 2010 and …
The calm before the storm – why market buoyancy could be a false premise
Both equity and bond markets are riding high, suggesting an over-valuation in financial markets that is unsustainable over the longer-term. The equity market in the US and Europe stands at a record high, whilst the bond markets appear to be shrugging off concerns around inflation and over-leverage. The bullishness we see in both markets creates …
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