HSBC: How can investors escape 'Death Valley'?

HSBC's global research team has suggested US economic data is in ‘Death Valley': not weak enough to guarantee more quantitative easing but not strong enough to be self-sustaining.

The group's David Bloom suggests both the US and the eurozone are stuck in a policy stalemate, pointing to this as the main reason why the euro/US dollar exchange rate has remained range-bound at $1.30-$1.32 despite poor newsflow from the eurozone, US economic data is following "practically the exact same pattern" seen in 2011, HSBC said - an upturn at the start of the year following by gradual disappointment - but in the absence of the marked downturn seen in 2011 the economy remains in limbo. Furthermore, the team suggested European governments, the European Central Bank and markets...