Consumption and a cost-of-living crisis are upon us, but markets blithely assume it’s all upside to 2023. The risk is not a massive crash, but growing realisation the global economy has peaked, needs a period of normalisation and a reset after the madness of the last decade.
Post-pandemic markets are challenging! We’re juggling multiple crises from inflation shocks, market wobbles and policy normalisation. Markets today are adjusting to the last 14 years of extraordinary monetary policy which have distorted the basis of markets and economic behaviours. Addressing them will be a long-term market challenge.