Global: Inverted pyramids always topple
Stability in markets is often self-reinforcing but as the cycle tops out we start to see divergences. We seem to be entering this phase. Not only is the breadth of global growth narrowing but we’re also seeing financial markets take opposing paths. Some emerging markets might appear to have fallen too far, but few of their idiosyncratic issues have been addressed and most are in the cross-hairs of global protectionism. We move to underweight global equities.