2023-02-24 Markets

Markets and commentaries continue to be dominated by speculations on the direction of official rates. As economic data typically does not follow a straight line (something our brains seem to be hard-wired to prefer), this behavior is likely to persist for weeks if not months. Just like the much agonizing debate on whether the current bout of inflation is temporary or permanent (still ongoing in case you were wondering), it’s difficult to navigate news cycles without an anchor or a point of reference. So, buckle up – or keep your seat belts fastened.
     More worrisome to me is the continued negative returns in emerging market equities (-2.5% for the week, in Euros), a sign perhaps that at least one group of investors are not happy with where the global economy is headed.
[Cover: The New York Times; Spencer’s uplifting story here]