Too Much, Too Fast

Boston / Zürich, 18 January 2016

Even the most resilient markets can crumble under pressure, as we have seen from the volatile start of 2016. Markets have been buffeted by instability and further government intervention in China, plummeting oil prices, geopolitical jitters, and concerns that the global economy will grow even more slowly than forecasted with very little bounce in global inflation.

QUICK POINTS

  • China's policy errors, questions about the US Federal Reserve's decision to tighten monetary policy, plummeting oil prices and fears of slow global growth are giving the markets more than they can handle.
  • Decelerating growth in China has been a major catalyst for the slide in oil prices, which is weighing heavily on the EM growth story.
  • Although concerns in the bond markets remain, high-grade bonds, which are still viewed as safe haven assets, will likely continue to benefit from any flight from risk assets.

Please follow link to read full commentary from Erik Weisman, Robert Spector and Sanjay Natarajan:

MFS Investment Insights: Too Much, Too Fast

ENDS


Picture of Erik Weisman (JPEG)



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