Tag Archives: risk appetite

Published: 17th March 2016 Download issue: Financial markets search for a second wind Equity markets in developed economies rebounded in February, after spending December and January in an attitude of crisis. We think that this is just a tactical rebound, rather than a return to the bull market that prevailed on equity markets from 2009 to 2014. The fundamentals that limit the upside for equities have not changed; meanwhile, the limits of central bank policy are becoming increasingly...

A selloff as violent as the one global equities markets experienced this past Monday can have effects that mirror a real-life earthquake. Once the earth stops moving, shell-shocked investors have to figure out what caused all the shaking and whether aftershocks are coming. They also have to determine whether anything valuable is hiding in the debris.   To the first point, it’s quite clear that trouble in China was the catalyst for the rout. It all started on Friday, August 21, when...