Barron’s (April 23)
“The global debt situation is raising alarms for the International Monetary Fund, which on Wednesday said ‘off-the-charts’ trade uncertainty was exacerbating a global debt load that it estimates crossed the $100 trillion level in 2024.” Current IMF projections call for “levels to rise further, with debt to global gross domestic product hitting 100% by the end of the decade,” but worldwide public debt “could soar to around 117% of GDP by 2027” in an extreme “adverse scenario,” though noting, “even that extreme scenario may be underestimating tail risk because trade and geoeconomic uncertainty has escalated, financial conditions have tightened, financial market volatility is visible and spending pressures have intensified.”
Tags: $100 trillion, 2024, Adverse scenario, Alarms, Exacerbating, GDP, Geoeconomic Financial conditions, Global debt, IMF, Market volatility, Off-the-charts, Spending pressures, Tail risk, Trade uncertainty, Underestimating
Institutional Investor (January 9)
“Amid market volatility in 2022, defensive stocks, most of which are dividend payers with stable earnings, had a good run. While they tend to underperform growth or cyclical stocks in bull markets, they are usually perceived as safer bets during recessionary periods. Dividend stocks gained 2 percent from January to October 2022, beating the market by more than 20 percent.”
Tags: 2022, Bull markets, Cyclical, Defensive, Dividend stocks, Growth, Market volatility, Recessionary, Safer, Stable earnings, Underperform
The Economist (October 13)
“Just a year ago the world was enjoying a synchronised economic acceleration. In 2017 growth rose in every big advanced economy except Britain, and in most emerging ones.” Today, “the story is very different” and America alone is still outperforming. “This week’s market volatility suggests time could be short. The world should start preparing now for the next recession, while it still can.”
Tags: Advanced, Economic acceleration, Emerging, Growth, Market volatility, Recession, U.S., UK
Reuters (February 21)
“The recent surge in market volatility, by some measures one of the most dramatic on record, will have zero impact on investor returns beyond a few months. Literally zero.” Investors are better to hold tight to their investments. “In fact, the turbulence that wiped $4 trillion off the value of world stocks earlier this month is already fading.”
Tags: Dramatic, Impact, Investors, Market volatility, Returns, Surge, Turbulence
Institutional Investor (February 18)
“Are currency traders destined for extinction? Their ranks are thinning quickly, as computers take over their tasks and banks pull back from activity in financial markets. The trend is likely to continue and market volatility is likely to increase as a result, analysts say.”
