Pessimism out of fashion as markets adopt 'cherry thinking'

'Balance has vanished'

Markets are guilty of ‘cherry thinking’ - picking the narrative that best suits a positive outlook.

Disagreement on the economic narrative is a good sign of a balance in the overall picture. There is always a case in economics for good and bad outcome. Regardless of the phase in the cycle, there are always positive and negative factors to consider. But looking at the current market sentiment this balance has vanished. Four graphs explaining...