Swip says possibility of bear market up to 40%

Swip head of international equities Michael McNaught-Davis believes the possibility of slipping back into a global bear market has increased to 40% in recent weeks.

McNaught-Davis, who believes government spending cuts across many parts of world risks stifling economic recoveries, says the likelihood of a global bear market has jumped from about 30% a month ago, Bloomberg reports. The MSCI World has plunged upward of 10% over the past month as pressures on many eurozone nations to reduce record budget deficits led to an investor exodus from risk assets. "There is a definite risk of a bear market and the reason why we do not quite believe it at the moment is that at the micro level it still looks quite rosy," McNaught-Davis says. "But at some p...