U.S. Outlook: Fear replaces greed on Wall Street

Scott Anderson
Posted by Scott Anderson
Chief Economist

The markdown of the global growth outlook for this year hit like a grenade on the stock market this week.

Graph showing upward trend in investor confidence over last several years.The IMF’s revision cut the outlook to 3.3% and trimmed expectation again for growth next year.

For more on this and other economic developments to watch, see highlights of my weekly economic analysis below, followed by a link to the full U.S. Outlook report, delivered on Oct. 10.

Key observations:
  • The Eurozone still poses the biggest challenge to the global economy and is the source of the greatest downside risk.
  • Probability of deflation is also the highest in the Euro area at 30% over the coming year.
  • The U.S. stock market was ripe for a little shaking up as investors have gotten complacent with steady gains.
  • The stock declines could last for a while longer.
Click here to read my full report.

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