Larry Kantor, head of research at Barclays Capital, has caused a stir by encouraging investors to "take a more aggressive stance and increase their risk exposure". It’s a bold statement, encouraged perhaps by the clean bill of health given to Barclays last week by the Financial Services Authority. In my experience, in-house bank economists tend to the bullish side. One said to me a few months ago, "Oh, this is nothing like the seventies when inflation was roaring and unemployment was at three million". Well, we may not be there yet, but I suspect he’d modify his quasi-optimism now. All that said, Kantor’s position is worth reading. In essence, he says that pent-up global demand should soon start to kickstart some sort of economic activity. "Output growth is now well below that of demand, a situation that tends to bring its own reversal relatively quickly". Already, he says, consumer demand is stabilising and if you discount Japan (quite a big discount given that it’s the world’s fourth-largest economy), the global economy may have bottomed out. "… non-Japan Asian stock markets, where economy datat shows signs of improvement, have massively outperformined thius far this year." It’s small, but it’s encouragement. Picture source
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.