What Are Asset Managers Telling Us About Economic Growth?

Banks have had a very good year, partly because of the tremendous increase in interest rates that's led to this margin expansion. I think there's just a lot of uncertainty around how the tightening of financial conditions by the Federal Reserve is going to impact things like consumer spending and corporate confidence. A consumer is going to start to retrench as a result of inflation and as aresult of lower confidence. And a culprit is going to carry on investing in CapEx projects, which need to be funded largely by the banking system,. Which could result in weaker loan demand.