Beware getting too bearish on the global growth outlook
Tim Toohey | Yarra Capital Management | 18 February 2020
Global central banks are flooding the system with liquidity, financial conditions have eased sharply, the fiscal impulse has turned supportive and China’s stimulus measures will remain in place long after the Coronavirus has been contained. In that environment, recession risks will remain contained. The bigger risk is that bond yields will eventually follow the industrial cycle higher. Emerging market assets and the Australian dollar present as having the greatest upside risk through the remainder of 2020-21.