Weekly Insights From The FNArena News Desk 26/03/19

At risk of quoting the wrong investment legend, which is why I am sticking with anonymous, but a smart cookie once observed that after the infamous stock markets crash of 1987, investors the world around started worrying about the potential for a crash.

In similar vein, I’d like to put forward that selling risk assets because you might be worried about the world and the US economy sinking into recession looks well behind the curve at this stage. It is for this reason that commodities and equities sold off in the final four months of calendar 2018.

The world has seen a few dramatic changes since, and this has allowed for a quick V-shaped recovery. The first one is a significant policy change at the Federal Reserve, which not only has abandoned its intention for two more rate hikes medium term, Powell & Co have also decided that balance sheet reduction is no longer of the highest priority.

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