Has investor complacency reached a trough?

Growth expectations are so low investors have been engaging in worryingly risky behaviour - but the recent market shake-out could mean the end of complacency, explains FOUR Capital's Chris Rodgers.

Equity markets have recently shown some signs of returning to relative calm following the ‘growth panic' that seems to have triggered the sharp correction of the last few weeks. In fact, while confidence and expectations have been weaker in some economic surveys recently, real economic data has not been so bad - led by steady growth in the US. Indeed, even the German manufacturing PMI ticked up in October. Shake-out The recent market shake-out has also helped to remove any complacency that might have previously existed, re-setting expectations at a more realistic level. On balance,...