Jakobsen: Bonds only escape from the bear trapAngus Walker
With the stock market looking like it's going through a correction after Q1 highs, and with mixed messages from the ECB and US Non Farm Payrolls data; these are testing times. Some are more gloomy than others when it comes to 2014 forward prospects, and with perhaps the most pessimistic view, Steen Jakobsen, Saxo Bank's Chief Economist, is insisting that a bear market is "overdue".
Steen Jakobsen advises seeking shelter in fixed income assets. He's negative on equities, he sees year on year world growth coming out at zero percent. "We came into 2014 on a high, we had very high expectations and less than three months into the year we are already revising downwards...".
Steen seizes on the IMF phrase 'slowflation' to underline the state of the world economy. He says that "every five years statistically we start a bear market and the last low we had was in March 2009...".
Doom and gloom from a bearish Steen Jakobsen who argues that the world is in the grips of depression and is too delicate to cope with interest rate rises.