We end the first decade of the 21st century with markets booming, having recovered strongly from the great meltdown that (perhaps coincidentally) followed the Beijing Olympics in 2008.
Our sense is that the recent economic tumult has left us with an imbalanced world with below par growth prospects. Markets, however, seem to be addicted to powerful doses of stimulants of the fiscal and monetary kind and move ever higher after each “fix”.
Our clients’ portfolios remain defensively positioned as we worry that the symptoms from stimulus withdrawal may be severe.