In response to a multitude of global economic and financial vulnerabilities at hand, several major central banks capitulated early on this year and adopted an increasingly dovish stance – which has ultimately diffused the crisis in confidence and translated into a revival in risk appetite in 2019, leading stock markets higher.
Instead, we expect the global economy to find a floor and reaccelerate through 2019 – particularly if the external forces that have been weighing on sentiment dissipate. Specifically, the combination of diffused U.S.-China trade tensions and a policy-induced stabilization in China should prove sufficient in reigniting the global economy.
Finally, the latest string of upbeat activity data out of China suggests that the plethora of monetary and fiscal stimulus efforts may finally be proving successful in stabilizing the world’s second largest economy and by extension, the global growth trajectory.Story continues below advertisement
globeinvestor Yes, slowing growth is always good for stocks. 👌