Morgan Stanley's Steve Roach on the markets
Link
Excerpt:
"we concede that there could well be a “growth scare” over the next six months, with industrial-world GDP growth breaking below the 2.75% barrier during that period. That underscores a near-term vulnerability that could have meaningful consequences for financial markets. Equities could sag and bonds could rally further, as fixed income markets raise the odds of aggressive monetary easing by the world’s major central banks. "
"In my view, the near-term risks to our new global forecast remain very much on the downside. In large part, that risk assessment reflects the lingering imbalances of a US-centric global economy."
"Once again, the endgame probably hinges importantly on the American consumer. Reflecting our higher energy price assumptions"
"...equity markets, in large part, remain very much in denial; few seem concerned about downside earnings risks in developed-world markets in an energy-shocked climate, and there is even less worry about spillover effects into emerging markets in the event of a US-led shortfall in global growth.
Excerpt:
"we concede that there could well be a “growth scare” over the next six months, with industrial-world GDP growth breaking below the 2.75% barrier during that period. That underscores a near-term vulnerability that could have meaningful consequences for financial markets. Equities could sag and bonds could rally further, as fixed income markets raise the odds of aggressive monetary easing by the world’s major central banks. "
"In my view, the near-term risks to our new global forecast remain very much on the downside. In large part, that risk assessment reflects the lingering imbalances of a US-centric global economy."
"Once again, the endgame probably hinges importantly on the American consumer. Reflecting our higher energy price assumptions"
"...equity markets, in large part, remain very much in denial; few seem concerned about downside earnings risks in developed-world markets in an energy-shocked climate, and there is even less worry about spillover effects into emerging markets in the event of a US-led shortfall in global growth.
This entry was posted
on Tuesday, September 06, 2005 at 3:18 PM.
