Prepare for 'strange' occurrences as liquidity concerns overlooked

Trade war tensions a distraction

Tom Eckett
clock
Tom Eckett, Investment Week senior asset management correspondent
Image:

Tom Eckett, Investment Week senior asset management correspondent

Economic commentators' recession indicators are starting to flash amber, on the back of growing fears about tightening global liquidity, the impact of US dollar strength and escalating trade tensions between the US and China.

Oxford Economics warned investors are right to be increasingly nervous as this long period of growth has given a false impression of stability, encouraged risk-taking and led policymakers to underplay risks.  Its latest research note argued the risks of a recession or big slowdown, perhaps in 2020, have grown. Possible danger areas include higher-than-expected inflation; an unfavourable policy mix of trade tensions and central banks raising rates faster than market expectations; or tightening global liquidity combined with US dollar strength. Sell signals: Five fund buyers reveal thei...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Global

“Changes in fiscal, monetary, climate and debt policy are needed to counter capital misallocation and inequality,” World Bank president David Malpass said.

World Bank: 'Considerable' risk of stagflation

Growth forecast slashed

James Baxter-Derrington
clock 08 June 2022 • 1 min read
While developed market growth is set to stall, chief strategist at Pictet Asset Management Luca Paolini argued emerging markets would offer "double-digit opportunities"

Pictet AM warns of recession within two years and backs web3.0

'Reconfigure the investment landscape'

Melanie Boulton
clock 07 June 2022 • 2 min read
The Big Picture: What were the biggest stories from May?

The Big Picture: What were the biggest stories from May?

Recapping the top stories

James Baxter-Derrington
clock 06 June 2022 • 1 min read
Trustpilot