Last week I wrote about the asset-price fuelled boom fading. Back then the biggest worry for the market was Japan and Abenomics. However, in reality the biggest concern is emerging markets. I gave you some reasons why last week. Here are a few more.
In the US, the Fed's assessment of the economy is broadly upbeat. They see the economy expanding at a 2%+ pace over the next two years, the fiscal drag from austerity notwithstanding. And while I am more concerned about the economy falling out of bed than the Fed, I think the Fed is directionally right. The US expansion is going to continue on the back of consumption fuelled by a housing rebound. Just today for example, existing home sales hit their highest monthly level since November 2009.
The question here is not about long-term sustaina...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.