Managing Your Cash Flow

Published

Pre-green shoots?

1 Mins

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

Share this story

Want to get your new business on television?
Firm pursues bold ‘name your price’ strategy
Send this to a friend