Japan’s leading indicators in August fell to the worst momentum levels since the 2008 financial crisis highlighting that the global economy is likely headed into a recession. However, global equities remain at high levels with low realised volatility levels reflecting a strong belief of recent weakness only being temporary. It’s a dangerous game for equity investors to be playing but maybe the negative yielding bonds are creating perverse behaviour nobody could think of just 10 years ago. Today’s equity update also discuss HSBC’s decision to cut 10,000 jobs and the prospects for the banking industry.
https://www.zerohedge.com/markets/disconnect-between-equities-and-macro-grows-wider
