U.S. Outlook: Fear replaces greed on Wall Street
The markdown of the global growth outlook for this year hit like a grenade on the stock market this week.
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.