VGLT - Alarm Bells Are Ringing
Aggressive monetary ease may stem the global economic slowdown while boosting the value of financial assets, but we really need widespread structural financial and regulatory reforms, as well as trade deals, to meaningfully re-accelerate global growth. We were not surprised to see the OECD last week cut its growth forecasts for 2019 and 2020 to 3.3% and 3.4%, respectively, with the majority of the cuts coming in the Eurozone. Inflation forecasts were lowered too.
We have not altered our view, one we had since January, that global growth would bottom out by mid-year and begin