Generating global alpha

Trying to predict the trajectory of the global economy and corporate profits has been challenging for equity investors over recent months. The MSCI World index bounced off its mid-March low coinciding with the bail out of Bear Stearns as people started to believe that the worst point of the credit crunch could have been passed. Better than expected GDP growth, together with the arrival of tax rebates raised hopes that a US recession could be avoided. First quarter US corporate profits also proved better than expected - outside financials they grew by around 10pc year-over-year compare...