FYI: Rough Start
Whew! The financial markets just completed one of the
worst Januarys on record. It was a broad-based affair with
prices for most risk assets appearing to correct
indiscriminately. This sell-off has not been about one
particular concern but rather a confluence of them, which
has left market participants worried we may be tipped over
into a global recession. While such high correlations
between risk markets often suggest recession is near, the
Global Investment Committee (GIC) does not subscribe to
the view that such an outcome is inevitable. Instead, our
position is that the global economy will avoid such a fate
and continue to grow at a modest rate this year but below
the levels seen in prior expansions—in other words, more
of the same subpar growth we have witnessed since 2009.
Regards,
Ted
http://www.morganstanleyfa.com/public/projectfiles/onthemarkets.pdfMorgan Stanley GIC:
http://www.morganstanleyfa.com/public/projectfiles/gicweekly.pdf
