Barclays: Global Upside Will Keep Risk Rally Alive But China Looms As Major RiskBala Murali Krishna
Over the past several months, investors have braved growing risks such as political upheavals, likely global trade wars, and earlier-than-expected Fed hikes. As a result, credit spreads are now at multi-year tights, equity multiples are well above historical averages, and volatility is near pre-crisis lows as investors continue the dance. But is the risk rally now poised to end? "No and no,” Barclays asserted in a note released March 23. The British bank’s optimism is based more on a visible global upturn, and much less on the gloom in the U.S. on account of policy debacles. Barclays thinks risk assets can continue to go up.
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