BNDX - Goldilocks Walks A Tightrope
By Philip Lawlor, managing director, head of global markets research
The "just right" Goldilocks economic backdrop has been a major driver of global equity markets for the past several years. The recent dovish central-bank U-turn and easing trade tensions have fostered hopes that this benevolent combination of growth and inflation can persist.
But, as our March overview of global market conditions indicates, the challenges to the Goldilocks scenario have risen. Mounting signs of slowing global growth and persistent geopolitical uncertainties pose greater hurdles for revenues and corporate profit margins - and, in turn, risk appetite.