The global economy is rebounding significantly despite the alarming number of black-swan challenges. Stock markets are rallying in tandem, reflective of the improving economic and financial backdrop. Ironically, the good news has led many to question the need for further monetary stimulus, while at the same time some suggest that without the Federal Reserve’s quantitative…
As the news of a potential nuclear crisis in Japan worsened, markets were reflecting a “get-me-out-of-everything-risky” mindset, as commodities and stocks were selling off sharply and triple-A government bonds are rallying.
Yesterday in St. Thomas, Ontario, and the end of my economic outlook presentation, I said that while we have no idea what natural disasters might befall us, the U.S. and Canada are likely to straddle 3% growth this year and next.
The earthquake, which registered 8.9 on the Richter scale, is the largest to hit Japan in at least 140 years, although the overall ramifications are still very much uncertain and will depend critically on any tsunami-related damages in the Pacific Basin.