The world economy - muddling along
04 September 2014
The world economy continues to muddle along at a pedestrian rate of growth. For equity investors this has been a ‘goldilocks’ scenario – not too hot to worry about higher interest rates, nor too cold to be concerned about profitability. For bond investors, the lack of inflationary pressures at a global level, and the likelihood of further monetary easing in Europe, has exerted downward pressure on bond yields. Meanwhile, geopolitical concerns rumble (sometimes loudly) in the background; while tragic at a human level, events so far have not had a major economic impact at a global level.