Tuesday, February 4, 2014

Bob Janjuah reconfirms bearishness long term

 I remain firmly and resolutely structurally BEARISH the post-2008/09 QE driven rally in risk assets. So no change there. 

As the year unfolds in both EM and DM we will I think see that most major and relevant data (economic) and earnings trends will be weak or deflationary. QE has so far failed to create the broad-based real economy inflation in incomes, earnings and productivity needed to get growth going again and thus has largely failed to achieve its primary objective, which was to drive the much-needed post-2008/09 debt deleveraging – heavy indebtedness, now also including the EM bloc, still dominates.