Regional Specialists Review August 2016
After a sudden, severe, though brief bout of self-doubt, investor fear has evaporated again and equity markets rebounded, with the U.S.' breaching new highs. The Brexit vote was the most visible trigger for June's spike in uncertainty. But we live in an era of disbelief. The global political dialogue and myriad other events overwhelm the senses of many, even as U.S. growth continues to approach longevity records.
Meanwhile, monetary authorities continue to do yeoman's work, stimulating growth and reducing unemployment. Universally criticized, central banks nevertheless carry on with innovative, if controversial, attempts to offset global excess capacity and deflationary pressures in the absence of any fiscal leadership. Some argue we should have elected officials running central banks. We couldn't disagree more. But we may live to lost that battle.