As is usually the case during a ‘late cycle’, markets have become highly sensitive to US economic data releases. A weak jobs report in early August temporarily shook investor confidence by reigniting recession worries. Yet signs of resilient spending and Powell’s dovish speech at Jackson Hole helped tone down concerns of an imminent slowdown, again fueling risky assets. As the Fed starts its easing cycle, should investors continue favoring riskier assets, or are markets underestimating risks to the economy? Join…
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