February 8, 2013 - In investing, every silver lining has a cloud. Almost all good news can be spun as bad news, and vice versa. The economy’s booming? Watch out for inflation and higher interest rates. The market crashed? What a buying opportunity!
The global economic recovery now gathering pace is deepening income inequalities in both advanced and emerging nations, threatening to undermine policy makers’ efforts to repair their finances and fix currency misalignments.
Stocks slid, while the dollar and Treasuries rose, amid concern a meeting of European leaders this week will fail to halt a debt crisis that threatens to drag U.S. corporate earnings to the first decline since 2009. Oil slumped while agricultural commodities rallied.
The worst performance by Treasuries since the second quarter of 2009 reflects prospects for faster U.S. economic growth rather than concern that rising budget deficits will drive investors away from government debt.