Risk aversion remains high as deleveraging takes time to happen

The overall economic picture remains bleak, with high-risk investments losing clear ground once more...

The overall economic picture remains bleak, with high-risk investments losing clear ground once more in the first quarter. Only towards the end of the quarter did we see a gradual stabilising in the macroeconomic indicators, which was also reflected in a recovery on the stock markets. In the first three months, most equity markets have fallen below their lows of November 2008. Meanwhile, the marked decline in corporate earnings weighed on the equity markets. In the US, for example, quarterly earnings fell for the sixth quarter in succession. The last time such a negative run was witnessed...