David Jane: Take a hard look at the data

Positive data v negative narrative

clock • 5 min read

Investors need to address any fears of rapid monetary tightening leading to a market correction, recession or even, according to some pundits, a meltdown by considering data not headlines, argues David Jane

As the long bull market continues, there is plenty of talk on why it is going to end - much of it surrounding the reduction of monetary stimulus. So what is the truth behind the fears of rapid tightening leading to a market correction, recession or even, according to some pundits, a meltdown? In terms of simple interest rate policy, the US equivalent of the Bank of England base rate remains at or below zero in real terms - hardly tight, in other words, and in fact still at levels that in the past would have been regarded as very loose. The shape of the curve - that is, the difference ...

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