Brevan Howard's Top Economist Sees Three Huge Macro Turning Points Under Way
Odd Lots
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Paradigm Shift in Markets: Major Forces Changing the Financial Landscape
The financial market has undergone a paradigm shift, marked by three major forces. First, the era of new normal and global savings glut has ended, leading to higher interest rates and volatility and a real budget constraint on sovereign debt. Second, China's shift towards state-directed capitalism and economic nationalism has significant effects on global markets due to de-globalization. Lastly, the end of the end of history era and the rise of geopolitical risks pose a genuine challenge to liberal democracy and have a direct impact on financial markets, potentially causing inflation due to the expensive nature of wars.
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