Why the global economy is set to perform better than its "Angst Meter" implies
It has been a turbulent start to the year for the global financial markets, the dominant trend being sharply falling equity prices, bond yields, and commodity prices. For instance, year to date (as of Jan. 19), the S&P 500 is down 8%, the Nasdaq is down 11%, and the Shanghai Composite Index is down 15%; 10-year U.S. Treasury yields have fallen by 21 basis points (bps) (to 2.06%), 10-year Japanese government bond (JGB) yields have dropped 4 bps (to 23 bps), and 10-year U.K. gilts are down 26 bps (to 1.70%); and the Brent spot oil price is down by $8.46, falling below $30 for the first time in 12 years.