The Third Wave of Deflation is Over – Fidelity
Dominic Rossi, Global Chief Investment Officer at Fidelity International, suggests that the developed economies have stood up well to the latest wave of deflation emanating from emerging economies that has seen a combined volume and price shock depress global trade and output.
Key Quotes
“This third wave of deflation (coming after the financial crisis of 2008-9 and the European sovereign crisis of 2011-12) is now over, as is the period of dollar appreciation which was tightening financial conditions.
Indeed, dollar strength has ultimately acted as the catalyst for much needed central bank coordination that is now easing financial conditions. Fears that the US might enter a recession now look exaggerated and I expect another up-leg in the bull market in US equities.”
(Market News Provided by FXstreet)
