We are in the hands of the central banks. What could possibly go wrong? Financial assets are now such a large part of the global economy that, combined with the huge debt within corporate balance sheets, the collective is now too big to fail. In addition, government deficits are the highest since WW2 therefore, global central banks will be slow to act. It is a fine line in such an indebted world.
• We are in the hands of central banks
• Global growth is rebounding strongly
• Recent inflation spike is expected to be transitory by markets
• Valuations across all assets are very full
• Expect an increase in volatility
• Remain diversified with a value bias
Or watch: Grant Patterson & Michael Ogg discussing the current outlook.