“What Could Possibly Go Wrong?” – Two Banks Answer

With much of the investing world preparing to take the next two weeks off for vacation right after Friday’s payrolls number hits, one question being thrown around by traders is “what could possibly go wrong” in the immediate future?
Answering this question this morning are two bank economists, first, below we present the thoughts from UBS’ global chief economist Paul Donovan.
What could possibly go wrong in the next fortnight? The world is in a rather dull mid-cycle economic position. This does not make for good television (hence the tendency to sensationalize dubious quality data), but it suggests a steady economic state.
The inflation story is nothing to get excited about. We have had the easily forecast rise in inflation as weirdly weak oil prices dropped out of the calculation. Now most developed economies have inflation rates around their long-term averages.

This post was published at Zero Hedge on Aug 2, 2017.