World economy & markets

 The current bull run in markets worldwide has raised expectations of an optimistic scenario in the global economic recovery. The S&P 500 has increased by about 17 per cent between end March and early July.

 The world MSCI index is up 11.9 per cent on a year to date basis, the Citigroup world bond index is up 7.4 per cent. Even the infamous emerging markets asset class is buoyant.

 The MSCI emerging markets index is up 16.9 per cent and the emerging markets bond index is up 20.2 per cent. This article tries to illustrate the dichotomy between the robust performance of financial markets and the relatively weak drivers of global growth.

 The 1990s epitomises the Chinese proverb