The Price of Uncertainty

Date Added: October 13, 2018 | Comments Off on The Price of Uncertainty | Filed under: Blog

Market Contradictions

The first contradiction is the divergence between rather positive economic forecasts and, in a buoyant market, the depressed stock prices of companies in sectors needed to achieve those forecasts, as if the market did not believe those companies would benefit.

The second contradiction is the divergence opposing an optimistic market view of US economic performance and prospects to a rather pessimistic view of developments elsewhere, seen mostly from a US-centric perspective which these days tends to be through a Trump lens (and for Europe an additional Brexit lens). It’s as if the continuous barrage of aggressive but often ill-informed and ill-considered pronouncements and actions coming from the US monopolizes so much attention that it colours all perspectives, in the US and abroad. Given the overwhelming influence of US media, these perspectives end up influencing non-US views and possibly taint the ability of many stock markets to coldly evaluate prospects.

To continue reading the September issue of our “Reflections” please click here

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