We continue to assume that the crisis in the euro-zone will flare up during the second half of this year. And we also think the Fed will scale back its asset purchases during this period, before halting them altogether in the early part of 2014. We suspect that stock and bond markets in most of the major developed economies will weather these developments quite well. But we are less sanguine about the outlook for other asset classes that we believe have benefited the most from the US central bank’s unconventional stimulus. These include emerging market assets and most commodities, which should also remain vulnerable to disappointing growth in the global economy.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services