Global corporate earnings growth is poised to accelerate this year as higher spending by U.S. consumers and Europe’s gradual rebound from a two-year recession help offset a slower economic expansion in China.
Declines that erased $1.7 trillion from global stocks as currencies from Turkey to Argentina slid are proving a Wall Street maxim, according to Brian Barish of Cambiar Investors LLC: selling can start anywhere.
The government's inability to problem solve undermines the traditional safe haven appeal of government instruments, from T-bills to the dollar. Investors usually flock to 30-day T-bills as a place to hide during times of exceptional stress. Not now, however. Investors are demanding significantly more return to hold government paper, with a premium of 28 basis points today compared to 3 basis points nine days ago.